Final answer:
The statement about microlending that is not true is that loan default rates are higher than traditional loans (option c). In fact, microlending tends to have lower default rates and is often more community-focused.
Step-by-step explanation:
The statement about microlending that is not true is 'c. the loan default rates are higher than traditional loans.' Studies have shown that microlending institutions often report lower default rates than traditional banks. This is partly because microlending usually involves close peer monitoring within the community and a focus on lending to highly motivated individuals who are often excluded from traditional banking. Additionally, microlending often supports community-level improvements as funds are typically used for local businesses or services that can benefit a larger group.
While statement 'a. loans to individuals tend to help a larger set of people in the community' is true as the microloans can support local businesses or services, benefitting multiple people, statement 'b. the interest rates are reasonable' can vary based on the program and the region, though they are typically higher than conventional loans to cover operating costs. Statement 'd. on average, poor women have proven to be more effective at helping their families than poor men' generally reflects the rationale behind many microfinance programs targeting women who often strategically invest in their families and communities.