Can You Discuss The Role Of Credit For The Economic Development?

Credit: The sale of goods and services and money claims in the present in exchange for a promise to pay in future. In other words we can say that it is a debt or simply a promise to pay in future on account of immediate transfer of goods.
Importance of Credit:
Importance for Business: Credit enables the individuals and firms to purchase the important inputs for the production. Generally one business man has not sufficient amount for the business. So credit is very useful for the business.

Importance for Agriculture:
Like any other sector credit requires for the agriculture sector. Today we are using modern technology, like tractors, tube-wells and fertilizers. Our farmer is very poor and is unable to use these things. Keeping in view the importance of credit for this sector, Govt. of Pakistan is providing interest free credit to farmers.
Importance for Industry:
Credit is used for the purchase of land, construction of building and purchase of raw material in the industrial sector. Later on for the expansion of production it is used. So this sector can not be ignored.
Importance for Economic Growth:
Without adequate credit facility we cannot increase the production of the various sectors. In the less developing countries rate of out put is low because rate of capital formation is low due to non-availability of credit facilities.