Home › SBI PO › Banking Awareness › Financial Institutions › A microfinance loan is defined as a loan that is:
A microfinance loan is defined as a loan that is:
ACollateral firm
BCollateral free
CCollateral full
DCollateral first
Answer & Solution
Correct answer: B. Collateral free
1. It goes to a household within an income ceiling.
2. The borrower puts up no security.
3. It is a collateral-free loan.
_Source: RBI, FAQs on Non-Banking Financial Companies_
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