Which of the following is NOT a common product offered by microfinance institutions in India?

Key Points

•  Microfinance institutions in India primarily focus on providing financial services to the economically weaker sections of society who do not have access to formal banking services.
• The most common products offered by microfinance institutions in India are personal loans, insurance products, and savings accounts. These products are designed to meet the specific financial needs of the target customers and are offered at affordable interest rates.
• Credit cards are not typically offered by microfinance institutions in India. This is because credit cards are generally associated with higher credit risk and require a certain level of creditworthiness to qualify for them.
• Personal loans are one of the most popular products offered by microfinance institutions in India.
  • These loans are typically used for meeting various personal expenses such as medical emergencies, education, and home renovation.
•  Insurance products such as life insurance and health insurance are also commonly offered by microfinance institutions in India. These products provide financial protection to the customers and their families in case of unforeseen events.

Additional Information

• Personal loans: These are unsecured loans that do not require any collateral. The loan amount is typically small, and the repayment tenure can range from a few months to a few years.
• Insurance products: Microfinance institutions in India offer various insurance products such as life insurance, health insurance, and crop insurance. These products are designed to provide financial protection to the customers and their families in case of unforeseen events.
• Saving accounts: These are basic savings accounts that can be opened with a small deposit. The interest rates offered on these accounts are usually higher than those offered by traditional banks.