Q. . Consider the following statements with reference to ‘Microfinance’::
1.Microfinance loans do not require any collateral.
2.They provide loans for a longer period of time.
3.Micro savings accounts allow entrepreneurs operate savings accounts with no minimum balance. .
Select the correct statement using the codes given below:

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: C
Notes:

Explanation –

Statement 1 and 3 are correct. Microfinance loans do not require any collateral. Micro savings accounts allow entrepreneurs operate savings accounts with no minimum balance.

Statement 2 is incorrect. Microfinance Institutions provide loans for a short duration.

Source: ForumIAS