SSC GD 2023 PYQ — Question 36

The correct answer is option 3 i.e. low-income.

Microfinance institutions provide financial services to low-income individuals, small entrepreneurs, and underserved communities who lack access to traditional banking. These institutions offer microloans, savings accounts, insurance, and financial literacy programs to empower economically weaker sections. Their goal is to promote financial inclusion, enabling individuals to start or expand small businesses, improve livelihoods, and escape poverty. By offering small, collateral-free loans with flexible repayment terms, microfinance institutions help marginalized populations achieve financial stability and self-sufficiency, contributing to overall economic growth and social development.