Economics · MSME Financing
What is the primary role of Development Financial Institutions (DFIs) or Development Banks in supporting the MSME sector?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1They focus strictly on high-interest, short-term commercial loans for luxury retail brands.
- 2They restrict all forms of lending and credit facilities exclusively to foreign enterprises.
- 3They only provide equity financing and completely prohibit debt funding options.
- 4They offer long-term concessional credit, developmental support, and structural financing for capacity building.✓
Correct answer
They offer long-term concessional credit, developmental support, and structural financing for capacity building.
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