BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At present, MFl obtain finance from banks according to RBI guidelines
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MFIs provide small scale credit to low income households and small informal businesses
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Both 1 and 2
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Neither 1 nor 2
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Detailed explanation-1: -Like a bank, a microfinance institution is a provider of credit. However, the size of the loans are smaller than those granted by traditional banks. These small loans are known as microcredit. The clients of an MFI are often microentrepreneurs in need of economic support to launch their business.
Detailed explanation-2: -Microfinance institutions act as a supplement to the services offered by banks. Apart from offering micro credit, financial services such as insurance, savings, and remittance are provided. Non-financial services such as training, counselling, and supporting borrowers are offered in the most convenient manner as well.
Detailed explanation-3: -C) It is the credit policy which does not cover the insurance of the borrower. D) It is mainly aimed to reduce the unemployment and poverty of a Country. Correct Answer: C) It is the credit policy which does not cover the insurance of the borrower.