Question

Microfinance in India is a form of financial service which provides small loans and other financial services to poor and low-income households for _________?

• A. medium and long term
• B. long term
• C. short term
• D. medium term

Answer 1

Answer:

C. short term

• Microfinance institutions typically focus on providing small, short-term loans, often referred to as microloans or microcredit, to low-income households and entrepreneurs who lack access to traditional banking services.

• These loans are intended to help individuals start or expand small businesses, improve their living conditions, and increase their self-sufficiency.

• While the loan amounts are small, they can have a significant impact on the livelihoods of borrowers, enabling them to generate income and build assets.