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प्रश्न
Why do we need to expand formal sources of credit in India?
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उत्तर
- Informal loans are far more expensive and often result in debt traps. Also, the high cost of borrowing in this situation could keep people from starting a new business through borrowing.
- The majority of loans from unofficial lenders have extremely high interest rates and don't significantly raise borrowers' incomes. Therefore, in order to reduce the hungry population's need on unofficial sources of credit, banks and cooperatives must expand their lending, especially in rural areas.
- In order for the poor to take advantage of the lower-cost loans, it is critical that formal credit be split more fairly.
APPEARS IN
संबंधित प्रश्न
Explain with an example, how credit plays a vital and positive role for development.
Compare formal sector loans with informal sector of loans regarding interest only.
Which one of the following is a formal source of credit?
__________costs of borrowing increase the debt-burden.
How can the problem of unemployment be eradicated in India? Explain any three ways.
“Credit can play a positive role.” Justify the statement with arguments.
“Credit can play a negative role.” Justify the statement with arguments.
Answer the following question.
Describe the importance of formal sources of credit in economic development.
Answer the following question.
Describe the bad effects of informal sources of credit on borrowers.
Explain the importance of formal sector loans in India.
