Question : Which of these conditions enhance the potential of MFIs to attract more resources and expand services to their clients?
Option 1: Financially viable and self-sustaining MFIs
Option 2: Access to foreign aid
Option 3: Ability to disintegrate from communities they operate in
Option 4: Ability to lend large amounts of loans
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Correct Answer: Financially viable and self-sustaining MFIs
Solution : The correct option is Financially viable and self-sustaining MFIs .
MFIs are crucial to the development of microenterprises. MFIs offer advice, training, loan services, and business monitoring services. Financial sustainability (FSS) measures an organisation's capacity to pay for all of its capital and operating expenses out of its pocket, independent of government assistance. An MFI that finances itself will be able to serve everyone in need and grow.
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