Which of the following is NOT an aim of the Microfinance institutions in India?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Decreasing the household income.
- Microfinance institutions (MFIs) in India play a crucial role in promoting financial inclusion by providing small loans and financial services to low-income individuals, especially in rural areas.
- Their primary aims include empowering women by giving them access to credit, encouraging entrepreneurship, promoting socio-economic development, and helping poor households become financially self-sufficient.
- These institutions are designed to increase, not decrease, household income by enabling people to start or expand small businesses, improve their living standards, and gain financial independence.
- Therefore, decreasing the household income is not an aim of microfinance institutions—in fact, it contradicts their core mission.
Other Options:
- Promoting women empowerment, Achieving financial self-sufficiency, and Promoting socio-economic development—are all core, interlinked objectives of microfinance, focusing on poverty reduction and holistic community upliftment.