Why is cheap and affordable credit important for the country’s development? Explain three reasons.
OR
How can the formal sector loans be made beneficial for poor farmers and workers? Suggest any five measures.
CHEAP and affordable credit is crucial for the country’s growth and economic development.
- Credit is in great demand for various types of economic activities. They could grow crops, do business, set up small-scale industries or trade in goods.
- In rural areas, credit helps in the development of agriculture by providing funds to the
farmers to buy seeds, fertilizers, expensive pesticides. - Manufacturers need credit for buying raw material or meet ongoing expenditure of production.
- Some people may need to borrow for studies illness, marriages etc.
- Thus, cheap and affordable credit is need for the growth of economic development and betterment.