Question

Providing small loans that are repaid within short periods of time used by low income individuals is called

• A. Credit
• B. Microfinance
• C. Capital
• D. Bonus

Hint:

'Micro' means small. Microfinance refers to small-scale financial services for people who can't access large banks.

Answer 1

The Correct Option is B

Microfinance is a category of financial services targeted at individuals and small businesses who lack access to conventional banking and related services. It includes microcredit (small loans), savings, and insurance, all designed for low-income individuals.