Career Qualified in Banking (CQiB) Certification Practice Exam

Microfinance is designed to provide financial services, such as small loans, to low-income individuals or entrepreneurs who typically lack access to traditional banking systems. This type of financial assistance enables people in economically disadvantaged positions to start or grow small businesses, improve their livelihoods, and foster economic development in underserved communities. By targeting low-income individuals or small entrepreneurs, microfinance aims to empower them to create sustainable income sources and contribute positively to their local economies.

In contrast, high-net-worth individuals, corporations seeking large loans, and government entities do not fall within the primary focus of microfinance. The needs of these groups typically involve larger financial transactions and services that are already available through conventional banking systems, which is why they are not the main beneficiaries of microfinance initiatives. The unique focus on low-income individuals or entrepreneurs distinguishes microfinance as a crucial tool for fostering financial inclusion and economic growth among marginalized populations.