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

Why is cheap and affordable credit important for the country’s development ? Explain any three reasons.

Importance of cheap and affordable credit for the country’s development:

Cheap and affordable credits would lead to higher income.
Many people could borrow for a variety of needs
It encourages people to invest in agriculture, do business and set up small scale industries etc.
It enables more investment which will lead to acceleration of economic activities.
Affordable credit would also end the cycle of debt trap.