Why is cheap and affordable credit important for the country's development? Explain.

Explain the statement. i Cheap and affordable credit would lead to higher income. ii If the credit is affordable then many people could borrow to fulfil variety of needs. iii People could grow crops, do business etc. iv People could set up new industries or trade in goods. v Banks and Cooperatives should increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces. vi It is important that the formal credit is distributed both in rural and urban area so that the poor can benefit from the cheaper loans.