Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are: 1. Credit facilities 2. Savings facilities 3. Insurance facilities 4. Fund Transfer facilities Select the correct answer using the codes given below the lists:

QUESTION

Medium

Economy

Prelims 2011

Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are:

Credit facilities
Savings facilities
Insurance facilities
Fund Transfer facilities

Select the correct answer using the codes given below the lists:

Select an option to attempt

Explanation

Microfinance refers to the provision of financial services to low-income individuals or groups who typically don't have access to traditional banking services.

Microfinance institutions provide small loans or microcredit to the poor who do not have any collateral. This is one of the most common services provided under microfinance.

Many microfinance institutions also offer savings accounts.

Some microfinance institutions provide micro-insurance products to cover health, life, and other insurances for low-income individuals and families.

Microfinance services also include fund transfers. These institutions provide remittance services to help individuals send and receive money, especially in areas where banking services are scarce.

Therefore, all the services listed in the question are provided under microfinance.

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