Micro Finance Institutions
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the broad definition of microfinance as used in the context of financial services for the poor?
Microfinance is a form of financial service providing small loans and other services, comprising micro-savings, micro-credit, micro-insurance and micro-pensions to poor and low-income households.
What is the official definition of a 'microfinance loan' under the RBI (Regulatory Framework for Microfinance Loans) Directions, 2022?
A collateral-free loan given to a household having annual household income up to ₹3.00 lakh
Which four core product categories together constitute the full scope of microfinance services?
The four core product categories of microfinance are micro-savings, micro-credit, micro-insurance, and micro-pensions, all targeted at poor and low-income households.
Under the RBI 2022 Microfinance Directions, what is the maximum permissible monthly repayment obligation of a microfinance household as a percentage of monthly household income?
50 percent of monthly household income
What distinguishes micro-credit from general commercial credit in terms of the target clientele?
Micro-credit targets poor and low-income households who lack access to formal banking, providing them with small loans that commercial banks typically do not offer.
How many members does a Self-Help Group (SHG) typically comprise?
10 to 20 individuals
How does micro-savings differ from conventional bank savings products?
Micro-savings are small-denomination savings facilities designed for poor and low-income individuals who cannot meet the minimum balance requirements of conventional bank savings accounts.
How many members constitute a Joint Liability Group (JLG) under the microfinance framework?
4 to 10 people
MCQ practice tests
Chapter-wise mock tests with instant scoring.
More chapters in Module C - Indian Financial Architecture
Related articles & notes
In-depth Indian Economy and Indian Financial System guides from our blog.
Master the full IEIFS syllabus
Every chapter of Indian Economy and Indian Financial System — videos, tests, notes and one-liner decks in one place.