Economics · Financial Institutions
What is the primary function of microfinance institutions (MFIs) in the MSME financing ecosystem?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To provide large-scale long-term loans to medium-sized enterprises
- 2To offer small loans to micro-enterprises and low-income individuals without formal credit histories✓
- 3To provide equity venture capital funding for high-growth start-ups
- 4To issue credit guarantee cover for scheduled commercial banks
Correct answer
To offer small loans to micro-enterprises and low-income individuals without formal credit histories
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