Question

Miss X wants to start a terracotta artefacts store in her village. She wants to supplement her income to raise the standard of living of her family. How can banks and cooperatives help her and helping such people will lead to overall development of the country?

Answer 1

Banks and cooperative societies need to lend money.

This would lead to higher incomes and many people could then borrow cheaply for a variety of needs.

They could grow crops, do business, set up small-scale industries etc.

They could set up new industries or trade in goods. This will prevent Miss. X from falling into debt trap, dependence on money lenders and traders i.e. the informal sources of credit and thereby multiplying her income which will lead to her better standard of living.

Cheap and affordable credit is crucial for the country’s development.