analyse the role of credit for development ???

Hi,

Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. This leads to increased production, employment and profits. However, caution must be exercised in the case of high risks so that losses do not occur. This advantage of loans also needs to be manipulated and kept under an administrative hold because loans from the informal sector include high interest rates that may be more harmful than good. For this reason, it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders, and can ultimately contribute to national development.

Hope it helps!

  • -10

Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. This leads to increased production, employment and profits. However, caution must be exercised in the case of high risks so that losses do not occur. For this reason, it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders, and can ultimately contribute to national development.

  • 52

(i) It helps in increasing economic activities of the country; thus, helps in its development.

(ii) If credit is made available to the poor people at reasonable rates, they can improve their economic condition. It will further improve their standard of living and overall development.

(iii) Credit helped in the development of secondary sector or manufacturing sector.

  • 112
1)easy accessible for poor people
2)poor people can start small scale business,agriculture......
3)they can invest more on education
 
  • 2
I dont know
  • -33
don't know
  • -42
1.credit refers to an aggrement in which lenders supplies the borrowers with money, good and services in return for the promise of future payments. 2.whether credit will be useful or not depends upon risks in the situation and on whether there is support in case of laws. 3.with credit people could grow crops ,do bbusiness and set up small scale industries.
  • 1
can we write the positive and negative role of credit ie: the example of salim and sapna
  • -20
CREDICT PLAYS AN IMPORTANT ROLE IN DEVELOPMENT OF AN ECONOMY OR AN INDIVIDUAL . IT HELPS TO INCREASE EARNING OF A PERSON BETTER THAN HE WAS PAID BEFORE . CREDICT ALSO HELPS IN DEVELOPMENT OF SECONDRY SECTORS .
  • -13
I know but not tell
  • -36
Cheap and affordable credit plays a crucial role for the country’s development. There is a huge demand for loans for various economic activities. The credit helps people to meet the ongoing expenses of production and thereby develop their business. Many people could then borrow for a variety of different needs. They could grow crops, do business, set up industries etc. In this way credit plays a vital role in the development of a country.
  • -9
Sorry I don't know
  • -19
yes
  • -24
i) It helps in increasing economic activities of the country; thus, helps in its development. (ii) If credit is made available to the poor people at reasonable rates, they can improve their economic condition. It will further improve their standard of living and overall development. (iii) Credit helped in the development of secondary sector or manufacturing sector.
  • -5
1. Credit ensures food security 2. Credit helps to manage disease 3. Credit helps me to send the email இதை படி டா பரதேசி நாயே
  • -21
kj;@
  • -14
Development is sustained by a proper credit policy. By giving loans to industries and trade, banks provide them with the necessary funds for carrying on their business without problems. This results in increased production and services, more employment and also profits. Caution is employed by the lenders when high risks are expected, so that there are no losses. Credit from the formal sector needs to be increased as loans from the informal sector, which have very high interest rates, do more harm than good. For this reason, it is important that the formal sector gives out more loans so that borrowers are not exploited by informal sector moneylenders, and the results definitely will contribute to national development.😀😀😀😀
  • -5
. Large Scale Production :- The less developing countries like India or Pakistan facing capital shortage problem. Our production sources are limited. So credit instruments have provided the money to the industrialists. Now production is on large scale and cost per unit has been reduced. The quality and quantity has been improved. 2. Increases In Saving Rate :- Credit provides an opportunity to save the money some people save the money but they are not capable to do any business. So they lend it to the financial institutions. Credit makes possible the shifting of money to those people who can use it for productivity. 3. Shifting Of Capital To Productive Purposes :- There are so many people who have surplus money but they are not capable to do any business. So they lend it to the financial institutions. Credit makes possible the shifting of money to those people who can use it for productivity. 4. Economy In The Use Of Metal :- Credit instruments are used in place of metallic coins. So there is a saving of precious metals also. Further use of credit instruments is more effective and convenient. 5. Provision Of Working Capital :- Some times an industrialist faces the finance problem to purchase the raw material or for the payment of wages. So he avails the credit facility. 6. Sale Of Bonds :- Some time a firm can obtain credit by selling the bonds. If the firm prospects are bright it will repay the principal amount with interest. 7. Case Of Young Firm :- Credit enables the manager of a young firm to develop its resources at a rapid speed. 8. Emergency Of New Businessman :- Credit makes possible the entrance of new talent in the business enterprise. If the person has all the qualities of a good entrepreneur but having no capital, credit provides him the chance to utilize his qualities. 9. Purchase Of Goods :- Credit enables the consumer to purchase the consumption goods like T.V. Radio, Car House etc. 10. International Payments :- Through the bills of exchange international payments can be made very easily. There is no need to import or export the gold for the international business transactions. 11. Useful For The State :- If the Govt. Budget is deficit, it can be met by selling the bonds and receiving the credit. Even in case of emergency, war, credit is very beneficial for the state.
  • 2
Credit is an agreement The role of credit is that the lender gives loan to the borrower with money with in return for the promise of future payment with interest
  • 0
What is democracy
  • 0
What is colletral
  • 2
Please find this answer

  • 0
Please find this answer

  • 0
Please find this answer

  • 0
What is skeleton system?
  • 0
Kunal Gautam
  • 0
social science
  • 0
Sir Syed Ahmed Khan details
  • 0
Credit plays a crucial role in a country?s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. This leads to increased production, employment and profits. However, caution must be exercised in the case of high risks so that losses do not occur. For this reason, it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders, and can?ultimately contribute to national development.
  • 0
Hi my insta I'd satish_kumar_099
  • 0
What are you looking for?