Hindustan Lever's initiative in India to provide start-up loans to women to buy stocks of products to sell to local villagers because it realized it could not sell to the rural poor in India unless it found ways to distribute its products such as soap, shampoos, and laundry detergents is an example of:
A)loan-sharking
B)nanofinance
C)philanthropic lending
D)microfinance

Question

Quizplus · Accepted Answer

The initiative by Hindustan Lever in India to provide start-up loans to women to buy stocks of products to sell to local villagers is an example of microfinance. Microfinance refers to providing small loans and other financial services to low-income individuals who normally lack access to traditional banking services. The aim of microfinance is to promote entrepreneurship and alleviate poverty by providing credit to those who would otherwise be unable to obtain it.

Hindustan Lever's Initiative in India to Provide Start-Up Loans to Women