Identify the INCORRECT statement in the context of Microfinance Institutions in India.
1
A microfinance loan is given to a household having annual household income up to Rs. 3,00,000.
2
A microfinance loan is a collateral-free loan.
3
When giving a micro loan, a household means an individual family unit, i.e., husband, wife, and their unmarried children.
4
A microfinance loan should be linked with a lien on the deposit account of the borrower.