Which one of the following statements about a borrower from a Microfinance Company is <strong>NOT</strong> correct?

  1. A. The borrower should not have annual income beyond a limit.
  2. B. The borrower should not seek loan amount beyond a limit.
  3. C. The borrower should not refuse to offer a collateral.
  4. 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.

Related questions on Economics

Practice more CDS General Knowledge questions