‘Credit’ refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.
Credit plays a vital and positive role as :
(i) Credit helps people from all walks of life in setting up their business, increase their income and support their families.
(ii) To some people loan helps a lot in constructing their houses and get relief from monthly rent.
(iii) To others it helps a lot in raising their standards.
(iv) Example of Salim : If Salim borrows some money from the bank, he can invest it in his business. This will increase his inventory and an increase in turnover. This increased turnover will generate more earning for him.
