Economics · Financial Institutions
What is the function of microfinance institutions (MFIs) in the MSME financing ecosystem?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To provide large loans to medium-sized enterprises
- 2To offer small loans to micro-enterprises without formal credit histories✓
- 3To provide equity funding for high-growth MSMEs
- 4To guarantee corporate loans for urban MSMEs
Correct answer
To offer small loans to micro-enterprises without formal credit histories
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