Question : Which of these is not one of the rationales behind microfinance?
Option 1: Many innovative institutional mechanisms have developed across the world to enhance credit, even in the absence of formal mortgages.
Option 2: More than access to credit needs subsidies
Option 3: The absence of formal employment makes the poor non 'bankable'
Option 4: More than subsidies need access to credit
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Correct Answer: More than access to credit needs subsidies
Solution : The incorrect option is More than access to credit needs subsidies .
A subset of financial services Microfinance is aimed at people and small enterprises without access to traditional banking and associated services. Through microfinance, people can safely and ethically take out small business loans that are reasonable and adhere to ethical lending standards. Financial services are offered to low-income individuals by MFI.
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