Credit Objectives According to Experts and Their Functions (Full Discussion)

Credit Objectives According to Experts and Their Functions (Full Discussion) – On the last occasion we have discussed in the previous article about credit meaning, and this time will discuss about the purpose and function of the credit itself.

Credit Objectives According to Experts and Their Functions (Full Discussion)

When we hear the word credit, there are certainly various things that are in our minds, it can be debt, loans and so on. But did you know that credit has its own purpose and function? Let's discuss it here.

Credit Purpose

There are several purposes of credit according to Kashmir including:

To get profit

Profits obtained from customers are in the form of interest as remuneration received by the bank.

Helping customers

The purpose of providing credit is to help the business of customers or borrowers who need money or funds. With the funds issued, the debtor can expand and develop his business.

Help the government

Aiming at helping the government in various fields, because the more credit or distribution of funds, the more development will occur in various places.

Credit Function

In addition to the purpose of credit, credit also has many functions, including:

To increase the usability of money

With credit, it can increase the utility or usability of money. If money is just saved, it will never produce anything useful, with credit, the money can be useful for producing goods and services from credit recipients.

Increase circulation and money traffic

The point is that the money that is channeled can circulate to various regions that need credit, so that areas that are lacking can get money to meet their needs.

Increase the usability of items

The point is that the credit provided by the bank can be used by customers to process goods that have no benefits into useful ones.

Increase circulation of goods

This means that with credit, it will increase or increase the circulation of goods from one area to another others, until the number of goods in circulation increases rapidly and can increase the number of goods sold circulated.

Economic stability tool

The existence of credit can make the economy stable, because credit will help the community in increasing the number of goods needed by a community.

Increase enthusiasm for business

This means that the existence of credit will create enthusiasm for debtors to run the business they are involved in, especially since the capital they have is very minimal.

Increase income distribution

That is, the more credit that is channeled to the community, the better their income will be

Improving International Relations

International loans in terms of providing credit from other countries will increase cooperation, so that peace will be created.

That's our discussion this time about Credit Objectives According to Experts and Their Functions (Full Discussion), which is discussed in full and straightforward, hopefully it can help and increase our knowledge. Thank you