Microfinance loans ________ require any collateral.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. do not
Low-income individuals and groups that would not otherwise have access to financial services can take advantage of microfinance, also known as microcredit, as a form of banking service.
- While lending is the primary function of microfinance firms, microloans can be as small as $50 or less than $50,000.
- However, a lot of banks now provide extra services, including microinsurance products, checking, and savings accounts, and some even provide business and financial education.
- Eventually, the ultimate aim of microfinance is to enable the poor to achieve self-sufficiency.