Economics
Answer
Credit at reasonable rates should be available for all because it allows poor borrowers to access loans with lower interest rates. It helps them to become progressive, increase their income and simultaneously protect them from the clutches of local money lenders. Therefore, we can say that accessible credit at reasonable rates promotes financial stability, economic growth, and individual empowerment.
Related Questions
Talk to some people to find out the credit arrangements that exist in your area. Record your conversation. Note the differences in the terms of credit across people.
What are the differences between formal and informal sources of credit?
Should there be a supervisor, such as the Reserve Bank of India, that looks into the loan activities of informal lenders? Why would its task be quite difficult?
Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?