Which of the following statements does not describe microcredit loans?

A. Microcredit loans are most common in poor, developing countries.

B. The UN estimates that women make up 76% of microcredit customers.

C. Microcredit loans are interest-free.

D. NGOs around the world currently use microcredit loans.

Question

Geography

Janiya

15 August, 17:17

Which of the following statements does not describe microcredit loans?

A. Microcredit loans are most common in poor, developing countries.

B. The UN estimates that women make up 76% of microcredit customers.

C. Microcredit loans are interest-free.

D. NGOs around the world currently use microcredit loans.

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Answers (1)

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Bradshaw · Answer 1

The statement that does not describe microcredit loans is C. microcredit loans are interest-free. On the contrary, microcredit loans have relatively low interest rates, which some may consider negligible. The interest rates in microcredit vary globally, but the average rate is 35%. This is the type of loan that is prominent in poor rural areas, and majority of recipients are women.