Advertisements
Advertisements
प्रश्न
"Cheap and affordable credit is crucial for the country's development." Assess the statement.
Advertisements
उत्तर
Cheap and affordable credit is crucial for the country's development due to the following factors:
- More lending would lead to higher incomes and encourage people to grow crops, do business and set up small scale industries.
- Cheap credit means more income is left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.
- Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation.
- Affordable credit would also end the cycle of debt trap and lead to sustainable economic activity that would allow borrowers to invest in better technology to make their business more competitive.
APPEARS IN
संबंधित प्रश्न
Which households take more loans from the formal sector?
Which one of the following is the main source of credit for the rich households?
Formal sources of credit include ______.
Rate of interest charged by moneylenders as compared to that charged by banks is ______.
Who supervises the credit activities of lenders in the informal sector?
Loans from banks and cooperatives are called ______.
Loans from moneylenders, traders, employers, relatives and friends are called ______.
Cheap and affordable credit is crucial for ______.
About 85 percent of the loans taken by poor households in the urban areas are from ______.
Most loans from informal lenders carry a very high interest rate and do little to ______.
