Question: Why Should Credit At Reasonable Rates Be Available For All?

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Why should credit at reasonable rates be available for all in points?

2 Answers. If credit is available at reasonable rate, this would lead to higher income and many people could then borrow for a variety of needs such as for growing crops, for setting small scale industries, for business etc. Thus credit at reasonalble rate will be helpful in the development process of a country.

Why should credit at reasonable rates be available to all Class 10?

Credit should be available at reasonable rates because on one hand if the rates are low, people will easily be able to return the loan and secondly they will improve loan borrowing power of people, invariably affecting their business and personal success.

What should credit at reasonable rates be available?

Answer. The credit at affordable or reasonable rates is available for all because it helps people to pay their credit without facing any challenges or other difficulties. Another important thing about this facility is that it brings everyone an excellent opportunity to pay the credit with reasonable interest rates.

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What are the role of credit for development?

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

What do you mean by credit class 10?

Answer: The Credit refers to an agreement under which goods and services, or money is exchanged against a promise to pay later. This agreement is largely based on trust. Another definition of Credit refers to the money given by banks to its customer and the later has to pay it on time.

What are the various sources of credit in Sonpur?

These are as follows:

  • (i) Agricultural traders.
  • (ii) Cooperative societies.
  • (iii) Moneylenders.
  • (iv) Commercial banks.
  • (v) Relative and friends, etc.

How is credit helpful for the country’s development?

Credit helps people to meet the ongoing expenses of production, complete production on time and thereby increase their earnings. Hence, it plays a vital and positive role in a country’s development.

Which of the following is not included in formal sources of credit?

Formal sources of credit does not include: Banks Co-operatives Employers

  • Banks.
  • Co-operatives.
  • Employers.

What do you understand by terms of credit?

Terms of credit are the requirements need to be satisfied for any credit arrangements. It includes interest rate, collateral, documentation and mode of repayment.

What do you know about credit?

Credit is the ability to borrow money or access goods or services with the understanding that you’ll pay later. To the extent that creditors consider you worthy of their trust, you are said to be creditworthy, or to have “good credit.”

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What are the three characteristics of development?

These are:

  • It is a continuous process.
  • It follows a particular pattern like infancy, childhood, adolescence, maturity.
  • Most traits are correlated in development.
  • It is the result of interaction of individual and environment.
  • It is predictable.
  • It is both quantitative and qualitative.

What is the role of credit in rural development?

Savings and credit are two sides of a coin which play an important part in rural development. Credit helps borrowers for short term production inputs or provides daily expenses in the interim period. Crdit facilities access and control over markets etc.

How does credit facilitate development?

Bank credit accelerates the process of economic development in the country by providing loan to the industries in time. Bank credit facilitates the large scale production of goods and other necessities of life, which result in technological research and lowering the cost.

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