How does credit play a vital and positive role? Explain with suitable examples.

Explanation

Credit plays a vital and positive role in the following ways:
(a) It helps people from all walks of life in setting up their business, increasing their income and providing support to their family needs.
(b) It makes it possible for the people to own or construct their own house and get relief from monthly rent.
(c) People often avail themselves of credit to purchase luxury items like vehicles, A.Cs, etc., which further raises their standard of living.
(d) It enables us to invest in human resources. People take credit for education, training, etc. which allows enrichment of human resources.
(e) For example, Salim availed credit facility to meet the working capital needs of production. It helped him to meet the ongoing expenses of production, complete production on time, thereby, increasing his income