Which financial products are commonly offered by Microfinance Institutions in India?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Savings, credit and insurance services tailored for low-income individuals.
Microfinance Institutions (MFIs) in India commonly offer financial products such as savings accounts, credit (microloans), and insurance services tailored specifically for low-income individuals and underserved communities. These products are designed to promote financial inclusion by providing easy access to small loans for income-generating activities, secure savings options with minimal requirements, and affordable insurance coverage against health, life, and asset risks. MFIs focus on empowering marginalized groups, especially women, by enabling them to improve their livelihoods, manage risks, and build financial resilience, thereby contributing to poverty alleviation and economic development at the grassroots level.