Microfinance refers to the provision of financial services, including small loans, savings accounts, insurance, and other financial products, to low-income individuals or those who have limited access to traditional banking services
Benefits of Microfinance
Poverty Alleviation:
Microfinance plays a crucial role in alleviating poverty by providing access to credit and financial resources to individuals who are typically excluded from formal financial systems
Financial Inclusion:
Microfinance promotes financial inclusion by extending financial services to underserved populations, particularly in rural areas and developing countries.
Entrepreneurship and Job Creation:
Microfinance supports entrepreneurship by offering capital to individuals to start small businesses.
Empowerment of Women:
Microfinance has a strong focus on women empowerment. It recognizes the potential of women as entrepreneurs and provides them with access to financial resources
Financial Education and Capacity Building:
Many microfinance institutions provide financial literacy training and capacity-building programs alongside their financial services.
Repayment Discipline and Creditworthiness:
Microfinance encourages repayment discipline and helps individuals establish creditworthiness.