Banking Term: Microcredit

Jan 6, 2015, 16:31 IST

Find important banking term that is useful in upcoming banking exam.

Microcredit is the extension of very small loans to the unemployed to poor endeavor and to the others leaving in poverty who are not considered bankable. These individual lack collateral steady employment and variable credit history and therefore cannot meet even the most minimal qualification to gain excess to traditional credit.  Microcredit is a part of microfinance which is the provision of the wider range of the financial services to the very poor.

Question

Which of the following statement is not correct for Microcredit?

a) It is a credit and other financial services and products of very small amounts

b) Microcredit aims to target the rural and urban poor who own micro – enterprises

c) Microfinance is a part of micro credit

d) All of above

e) None of these

Ans. c

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