Read the following passage and answer the questions based on the passage:
Microfinance institutions (MFIs) have become crucial agents for advancing financial inclusion in rural areas. Through extending small loans and savings accounts to people who don't have access to conventional banks, MFIs empower entrepreneurs -most often women - to initiate or scale up microenterprises. In most villages, these loans support poultry farming, handloom weaving, or tiny retailing outlets. MFIs go beyond credit by regularly offering financial education training, teaching borrowers to cope with cash flows and interest charges. Critics warn, however, that excessive interest rates and repayment pressure can result in over-indebtedness. To avoid such risks, some MFIs limit interest rates and spread repayment terms. Research indicates that when complemented by market linkages - such as guaranteed buyers for fruits and vegetables-microfinance can trigger sustainable economic growth and poverty reduction.
The primary function of microfinance institutions, according to the passage, is to:
Show answer & explanation
Correct answer: C
Explanation
The text explicitly states that MFIs are "crucial agents for advancing financial inclusion in rural areas."
It clarifies that they extend services "to people who don’t have access to conventional banks."
This includes providing small loans and savings accounts to help entrepreneurs, particularly women, start or grow small businesses like poultry farming or retailing.