Microfinance is the provision of financial service to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are : 1. Credit facilities 2. Savings facilities 3. Insurance facilities 4. Fund Transfer facilities Select the correct answer using the codes gives below the lists:

Microfinance is defined as the provision of a broad range of financial services to poor and low-income households who lack access to formal banking [4]. While often associated primarily with micro-credit (small, collateral-free loans), the scope of microfinance extends significantly further to include savings, insurance, and fund transfer or remittance facilities [3]. These services are designed to promote financial inclusion, allowing the self-employed and low-income consumers to manage risks, build assets, and invest in economic initiatives [2]. Specifically, savings facilities provide a secure place for small balances, insurance products help mitigate shocks like health or crop failure, and fund transfers facilitate the movement of money for transactional purposes [4]. Since all four listed services—credit, savings, insurance, and fund transfers—are integral components of the microfinance basket, option 4 is correct.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 18. Non-Banking Financial Companies (NBFCs): > p. 85
2. [4] https://pmc.ncbi.nlm.nih.gov/articles/PMC8427980/
3. [3] https://www.mfa.gov.tr/microfinance_-a-lifeline-for-poor-rural-people.tr.mfa
4. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.18 National Strategy for Financial Inclusion (2019-24) > p. 87