Which one of the following statements about a borrower from a Microfinance Company is <strong>NOT</strong> correct?
- A. The borrower should not have annual income beyond a limit.
- B. The borrower should not seek loan amount beyond a limit.
- C. The borrower should not refuse to offer a collateral. ✓
- D. The borrower should not refuse to pay any rate of interest offered.
Correct Answer: C. The borrower should not refuse to offer a collateral.
Explanation
Microfinance loans are fundamentally designed to be collateral-free for low-income borrowers. Therefore, the statement that the borrower must not refuse to offer collateral is incorrect.
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