(a) Analyse the importance of credit in the economic development of the country.

(i) Credit plays a vital and positive role in economic development.

(ii) Credit helps people to start new businesses and small-scale industries.

(iii) People can invest in agriculture, industries, education and infrastructure with the help of easy access to credit which boosts economic growth.

(iv) Farmers can take credit to buy seeds, fertilizers, machinery which increase agricultural productivity.

(v) When businesses expand with the help of credit, they create more job opportunities for people.

(vi) People can use credit to buy houses, vehicles etc to improve their quality of life.

(vii) Industries need large funds for buying machinery, technology and raw material which can be arranged through credit.

(b) Analyse the importance of 'Self-Help Groups' in the rural development of the country.

(i) The SHGs help borrowers overcome the problem of lack of collateral.

(ii) They can get timely loans for a variety of purposes.

(iii) Easy accessibility to loan.

(iv) Interest on loan is very low.

(v) SHGs are the building blocks of organisation of the rural poor.

(vi) SHGs help women to become financially self-reliant.

(vii) SHGs provide a platform to discuss and act on a variety of social issues such as health, nutrition etc.