More lending would lead to higher incomes and encourage people to invest in agriculture, engage in business and set up small scale industries. This leads to acceleration of economic activity. It also allow weaker sections of society to enter formal sector of lending and rid them of exploitation at the hands of informal moneylenders

Cheap and affordable credit is crucial for country's development

Introduction:
Cheap and affordable credit plays a significant role in a country's development. It refers to the availability of loans and credit facilities at low interest rates, which allows individuals, businesses, and governments to access capital for various purposes. In this response, we will discuss the importance of cheap and affordable credit for a country's development.

1. Promotes Investment:
- Cheap and affordable credit encourages individuals and businesses to invest in various sectors of the economy.
- It enables entrepreneurs to start new businesses, expand existing ones, and create job opportunities.
- Investment leads to economic growth, increased productivity, and higher living standards.

2. Enhances Infrastructure Development:
- Adequate credit availability at affordable rates enables governments to invest in infrastructure development projects.
- Infrastructure, such as transportation networks, power plants, and communication systems, is essential for economic growth and development.
- Cheap credit allows governments to finance these projects, leading to improved connectivity, increased efficiency, and attracting investments.

3. Supports Small and Medium Enterprises (SMEs):
- SMEs are crucial for economic development as they contribute significantly to employment generation and innovation.
- Cheap and affordable credit helps SMEs access funds to start or expand their businesses.
- It allows them to invest in technology, hire skilled labor, and develop products and services, contributing to overall economic growth.

4. Facilitates Agricultural Development:
- Agriculture is a vital sector in many countries, especially in developing economies.
- Cheap credit enables farmers to access funds for purchasing modern equipment, fertilizers, and seeds.
- It promotes agricultural productivity, enhances food security, and boosts rural development.

5. Reduces Poverty and Inequality:
- Cheap and affordable credit can play a significant role in poverty reduction and reducing income inequality.
- It allows individuals from low-income backgrounds to access funds for education, housing, and entrepreneurship.
- By providing opportunities to the marginalized and vulnerable, cheap credit helps create a more inclusive society.

Conclusion:
In conclusion, cheap and affordable credit is crucial for a country's development. It promotes investment, enhances infrastructure development, supports SMEs, facilitates agricultural growth, and reduces poverty and inequality. Governments and financial institutions should focus on creating an enabling environment that ensures the availability of cheap credit to stimulate economic growth and improve the overall well-being of the population.

(I) it will lead to economic development.
(ii) affordable credit would also end the cycle of debt trep .
(iii) it may improve the economic conditions of the poor and landless.