Economics · Banking and Finance
Which of the following definitions best describes the concept of microfinance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A microfinance institution is a company registered under the Companies Act, 1956, and engaged in the business of loans and advances and acquisition of shares/stocks/bonds/debentures/securities issued by the government.
- 2Microfinance is a banking service provided to unemployed or low-income individuals or groups, who otherwise would have no other access to financial services.✓
- 3A microfinance institution is a digital-only and mobile-first bank.
- 4Microfinance refers to providing banking services to individuals living in rural areas.
Correct answer
Microfinance is a banking service provided to unemployed or low-income individuals or groups, who otherwise would have no other access to financial services.
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