A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to Rs. _________.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 300000.
A microfinance loan is a collateral-free loan provided to households with an annual income limit set by regulatory authorities. As per the Reserve Bank of India (RBI) guidelines, households in rural areas with an annual income of up to ₹3,00,000 and in urban or semi-urban areas with the same limit qualify for microfinance loans. These loans aim to support low-income families, enabling them to engage in small businesses, improve livelihoods, and achieve financial independence, promoting overall economic growth and development.