Which of the following definitions best describes the concept of microfinance?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Microfinance is a banking service provided to unemployed or low-income individuals or groups, who otherwise would have no other access to financial services.
Microfinance aims to offer small loans, savings, insurance, and other financial services to people who are excluded from the traditional banking system, helping them improve their economic situation and build financial independence. This service is particularly beneficial for underserved communities and individuals in rural and low-income areas.