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The main objective of micro finance banking is to provide loans to co-operatives formed by persons engaged in small and cottage industries. Since their outreach individually to a bank is not acceptable or unwelcome, micro finance banking can play a pivotal role here, in providing soft loans to the cooperatives consisting of poor and down trodden people engaged in making cottage and household items or in garment sector.

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Q: What are the objectives of a micro finance bank?
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