Question

Which of the following is not correct
about the term - 'microfinance'?
(A) It is a financial service targeted
at individuals and small
businesses who lack access to
conventional banking and
related services
(B) It is a type of banking service
that is provided to unemployed
or low-income individuals or
groups who otherwise would
have no other access to financial
service
(C) It allows people to take on
reasonable small business loans
safely, and in a manner that is
consistent with ethical lending
practices
1 (D) The target group of all
microfinance institutions to
provide financial support to
unemployed women.​

Answer 1

Answer:

It allows people to take on

reasonable small business loans

safely, and in a manner that is

consistent with ethical lending

practices

Explanation:

Microfinance is a category of financial services targeted at individuals and small businesses who lack access to conventional banking and related services.

Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems.

Answer 2

The given question is asking about the Microfinance. No statement is wrong about it.

What is Microfinance?

Microfinance is the term evolved during in the banking sector when the large number of loans where rejected based on the income and other collaterals of the person.

The advantages of excessing the Microfinance are as follows:-

• This financial service is targetted at individuals and small businesses who lack banking and realted services sothat they are not fall in the trap of Moneylenders or the unauthorised means of lending.
• It also facilitates loan to the unemployed sections of the society so that they can start their business to support their livelihoods.
• It emerged as the mean of practicing the ethical lending therefore to resist taking loand from unorganised sector of the economy.
• Moreover, the service of microfinance also provide loans to the women also who mostly are unemployed.
• But the credit policy did not cover the insurance of borrowers.

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