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
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
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.