Definition & Benefits of Microfinance

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.

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