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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
In which country is the Grameen Bank meeting the credit needs of over 6 million poor people?
Formal Sources of credit include ______.
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 ______.
The RBI monitors the banks are actually maintaining ______.
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.
A farmer has borrowed money from a money lender at a high rate of interest, as he could not pay the interest, he was forced to borrow from another landlord to settle the amount for the interest borrowed to the money lender. State the consequences he may face in this situation.
