BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What does the microfinance model NOT predict?
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a decrease in interest rates when repayment is regular and in time
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homogenous risk groups
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self-selection of the best borrowers
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none of the above
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Explanation:
Detailed explanation-1: -The correct answer is Large amounts of loans. A large amount of loan is not a basic principle of micro-financial institutions in India.
Detailed explanation-2: -Microfinance is a term for financial services that are offered to individuals of lower socioeconomic backgrounds or those who lack access to traditional financial services. Microfinance includes a number of services, such as savings accounts, checking accounts, fund transfers, microinsurance, and microcredit.
Detailed explanation-3: -A borrower usually uses microloans if they do not have access to local financial institutions, if they have poor credit, or if they want a loan smaller than what their bank will allow.
There is 1 question to complete.