If the loans are cheap and affordable, this can lead to countries development in the following ways : (i) Cheap loans results in higher incomes and higher profits which can help in the expansion of business. (ii) More and more people can be benefitted by the loans in their businesses. (iii) This can help in making more and more agricultural activities, small-scale industries etc.Credit can be distributed more equally which helps in benefitting the poors by the help of cheaper loans.