Unit 4 Ch 3 : Money and Credit — Social Studies STD 10 — Question

Credit or loan refers to an agreement in which the lender supplies the borrower with money, goods or services, in return for the promise of future payment. There is a great demand of loans or credit because of the following reasons:

• It plays a major role in the development of a country by creating better facilities for agricultural and industrial activities.
• It helps people in all walks of life like, in setting up their business, in increasing their earnings and in supporting their families etc.
• Home loans helps people in investing money in buying houses.
• Loans also help in raising the social status of people by enabling them to buy cars, scooters, television etc.