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Compared to traditional bank loans, microfinance loans have all of the following characteristics except...

a) Smaller loan amounts
b) Higher interest rates
c) Collateral requirements
d) Focus on impoverished individuals

1 Answer

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Final answer:

Microfinance loans have characteristics such as smaller loan amounts, higher interest rates, and focus on impoverished individuals, but they do not require collateral.

Step-by-step explanation:

The characteristics of microfinance loans compared to traditional bank loans include smaller loan amounts, higher interest rates, and a focus on impoverished individuals. However, microfinance loans do not require collateral as a prerequisite for obtaining the loan. Collateral is an asset or property that the borrower pledges to the lender as security for the loan in case of default. Therefore, the correct answer is c) Collateral requirements.

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