Asked by Regina Orzechowski on Jul 15, 2024
Verified
Compared to traditional bank loans, microfinance loans
A) are much larger.
B) require collateral.
C) are made more frequently to women than to men.
D) have repayments that begin at a much later date.
Microfinance Loans
Small loans provided to individuals or groups in impoverished areas, intended to spur entrepreneurship and alleviate poverty.
Traditional Bank Loans
Traditional bank loans refer to fixed amounts of money borrowed from banks, with specified repayment terms, including interest, over a set period.
Collateral
An asset that a borrower offers to a lender as security for a loan, which can be seized if the borrower fails to repay.
- Understand the role and characteristics of microfinance loans and their impact on gender.
Verified Answer
DS
Dorreen San Pedro
Jul 20, 2024
Final Answer :
C
Explanation :
Microfinance loans are specifically designed to be accessible to individuals who might not have access to traditional banking services, including women. They often target female entrepreneurs and those in developing countries, aiming to empower them economically. This approach is based on the recognition of the pivotal role women play in community development and the challenges they face in accessing financial services.
Learning Objectives
- Understand the role and characteristics of microfinance loans and their impact on gender.