Why should credit at reasonable rates be available for all?
Credit at reasonable rates should be available for all because it is a right of the people. Without access to reasonable credit, a large section of the population would be kept out of the development process.
Cheap and affordable credit allows people to borrow for various needs like growing crops, doing business, or setting up small-scale industries. This leads to higher incomes and is crucial for the country’s overall development.
Currently, the poor depend on informal sources of credit with high interest rates that do little to increase income. Reasonable credit from formal sources would reduce this dependence and allow the poor to benefit from cheaper loans.
Explanation
This answer is derived from the textbook context which emphasizes that credit availability is a right and essential for inclusion in development. It highlights the economic benefits of cheap credit, such as enabling business and increasing incomes, which fosters national development. Furthermore, it addresses the inequality where the poor rely on expensive informal credit, noting that reasonable rates from formal sectors are necessary to reduce this burden and ensure equitable distribution of loan benefits.