Micro Finance
Microfinance refers to the provision of financial services—such as loans, savings, insurance, and credit—to individuals or small businesses that do not have access to traditional banking systems. It primarily targets low-income individuals or entrepreneurs in developing countries who lack the collateral or formal credit history required by conventional banks.
Microfinance institutions (MFIs) provide small loans, often referred to as "microloans," to help people start or expand small businesses, improve their living conditions, or invest in their education or health. These financial services are typically provided with flexible terms and lower interest rates, making it easier for the recipients to repay.
The goal of microfinance is to alleviate poverty, promote financial inclusion, and empower individuals, especially women, by offering them the tools and resources to improve their economic standing. Through microfinance, millions of people have been able to generate income, create jobs, and improve their communities.
