Microfinance
Microfinance is a financial service that provides small loans and support to individuals or groups, often in developing countries, who lack access to traditional banking. It empowers entrepreneurs, particularly women, by enabling them to start or expand small businesses, improve their livelihoods, and achieve financial independence. Beyond loans, microfinance institutions may offer savings accounts, insurance, and financial education. The goal is to alleviate poverty, promote economic growth, and foster self-sufficiency by giving people the resources to improve their circumstances. Microfinance plays a critical role in community development and entrepreneurship.
Additional Insights
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Microfinance refers to financial services, such as small loans, savings accounts, and insurance, provided to individuals or small businesses in low-income communities who lack access to traditional banking. It aims to empower people, particularly women, by enabling them to start or grow their own businesses, improve their livelihoods, and achieve financial independence. Microfinance institutions (MFIs) often focus on social development alongside profitability, using a model where borrowers trust and work together in groups to increase accountability. Despite its challenges, microfinance has been recognized as a tool for poverty alleviation and economic development.