ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Studies and reports suggest that women are better at repaying their loan on time and are at a less default rate than men. Women are comparatively at a lower credit risk rate than men.

Detailed explanation-2: -Microfinance provides women with the financial backing they need to start business ventures and actively participate in the economy. It gives them confidence, improves their status and makes them more active in decision making, thus encouraging gender equality.

Detailed explanation-3: -Microfinance services are provided to unemployed or low-income individuals because most of those trapped in poverty, or who have limited financial resources, do not have enough income to do business with traditional financial institutions.

Detailed explanation-4: -Microcredit is an extremely small loan given to those who lack a steady source of income, collateral, or any credit history. It aims to support and kickstart entrepreneurs who are unable to obtain the financial backing needed to start a small business or capitalize on an idea.