MFI (Microfinance Institution)

A Microfinance Institution (MFI) is a financial organization that provides small loans, savings, and other financial services to people who typically lack access to traditional banking. They mainly serve low-income individuals, small entrepreneurs, and communities in developing areas, helping them start or grow businesses, improve their living conditions, or manage emergencies. MFIs focus on making financial services accessible, fostering economic development and financial inclusion. They operate with a mission to empower underserved populations by offering affordable credit and support tailored to their needs, often emphasizing social impact alongside financial sustainability.