What is microfinance?

Question

Quizplus · Accepted Answer

Microfinance refers to financial services, such as small loans, savings accounts, and insurance, provided to low-income individuals or communities who typically do not have access to traditional banking services. These loans are usually smaller in size, averaging around $200, and are often provided to female borrowers. Grameen Bank, mentioned in choice C, is one of the most well-known microfinance institutions in the world, founded in Bangladesh in 1983. However, microfinance is not limited to India or Grameen Bank, as it is a global phenomenon that has expanded to other regions in the world. While choice D is generally true, the gender distribution of microfinance borrowers can vary depending on the region and the institution providing the services. Choice A is incorrect, as loan sizes in microfinance typically range from a few hundred dollars to a few thousand dollars, but not as high as $12,000.

What Is Microfinance