The correct answer is: d) All of the above.
Microfinance institutions (MFIs) are organizations that provide financial services to low-income individuals and households. These services can include loans, savings, and insurance. MFIs play an important role in extending credit to small businesses, farmers, and self-help groups (SHGs).
Small businesses are often unable to obtain loans from traditional banks because they do not have the collateral or credit history that banks require. MFIs can provide these businesses with the loans they need to start or expand their operations.
Farmers are another important group that MFIs serve. Farmers often need loans to purchase seeds, fertilizer, and other inputs. MFIs can provide these loans at affordable rates, which helps farmers to increase their yields and incomes.
SHGs are groups of individuals who come together to save and borrow money. MFIs can provide SHGs with loans that are used to finance a variety of activities, such as starting small businesses, improving housing, and investing in education.
MFIs play a vital role in providing financial services to low-income individuals and households. By extending credit to small businesses, farmers, and SHGs, MFIs help to promote economic development and improve the lives of the poor.
Here are some additional details about each of the options:
- Small businesses: Small businesses are often unable to obtain loans from traditional banks because they do not have the collateral or credit history that banks require. MFIs can provide these businesses with the loans they need to start or expand their operations.
- Farmers: Farmers often need loans to purchase seeds, fertilizer, and other inputs. MFIs can provide these loans at affordable rates, which helps farmers to increase their yields and incomes.
- Self-help groups (SHGs): SHGs are groups of individuals who come together to save and borrow money. MFIs can provide SHGs with loans that are used to finance a variety of activities, such as starting small businesses, improving housing, and investing in education.