In India, a microfinance loan is defined as a collateral-free loan given to a household having an annual income of up to Rs _____________________ as of October 2022.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs 3 lakhs.
- A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to ₹3,00,000.
- For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their unmarried children.
- All collateral-free loans, irrespective of end use and mode of application/ processing/ disbursal (either through physical or digital channels), provided to low-income households, i.e., households having annual income up to ₹3,00,000, shall be considered as microfinance loans.