Why is credit important for economic development? Explain.

(i) Credit helps people to start new businesses and small-scale industries,

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

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

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

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

(vi) Industries need large funds for buying machinery, technology and raw materials, which can be arranged through credit