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प्रश्न
"Cheap and affordable credit is crucial for the country's development." Assess the statement.
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 is not the main source of credit from the following for rural households in India?
Which households take more loans from the formal sector?
Formal Sources of credit include ______.
Loans from banks and cooperatives are called ______.
Loans from moneylenders, traders, employers, relatives and friends are called ______.
The RBI monitors the banks are actually maintaining ______.
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 ______.
Explain the significance of The Reserve Bank of India in the Indian economy.
Distinguish between formal and informal sources of credit.
