Microfinance and Microcredit

Microfinance refers to the provision of financial services, such as small loans, savings accounts, and insurance, to people who traditionally lack access to banking services, particularly in developing countries. Microcredit is a key component of microfinance, focusing specifically on small loans granted to individuals, often entrepreneurs, to help them start or grow a business. By empowering the poor with financial resources, microfinance and microcredit aim to reduce poverty, boost economic opportunities, and foster self-sufficiency, ultimately contributing to sustainable development and improved living standards for underserved communities.