Question

Microcredit programme refers to:

• A. Credit provision made by small farmers
• B. Credit provisions made by self help group to its members
• C. Credit provision made by large farmers
• D. None

Answer 1

The correct option is B

Credit provisions made by self help group to its members

Microcredit is used to describe small loans granted to low income individuals that are excluded from the traditional banking system. It is part of the larger microfinance industry, which provides not only credit, but also savings, insurance, and other basic financial services to the poor.