Hindustan Lever 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.Lever provided start-up loans to women to buy stocks of products to sell to local villagers.Today,over 45,000 poor women sell Lever products in 135,000 villages in India.This is an example of Lever's use of
A) macrofinance.
B) macrocapitalization.
C) microfinance.
D) microcapitalization.
E) megafinance.

Question

Quizplus · Accepted Answer

Lever's use of providing start-up loans to women to sell their products in local villages is an example of microfinance. Microfinance refers to providing financial services, such as small loans, to low-income individuals and small businesses who would not typically have access to traditional banking services.

Hindustan Lever Realized It Could Not Sell to the Rural