What is Microfinance?
Microfinance refers to the provision of financial services to individuals or groups who lack access to traditional banking and related services. Microfinance is particularly aimed at empowering low-income populations by offering them loans, savings accounts, insurance, and other financial products that can help in poverty alleviation and fostering entrepreneurship.
Key Takeaways
- Microfinance institutions provide small loans, often referred to as micro-loans, which are typically used to start or expand small businesses or for other productive purposes.
- Microfinance loans are often provided without requiring traditional collateral, such as property or assets.
- Microfinance aims to promote financial inclusion by extending financial services.
Table of Content
- History of Microfinance
- Benefits of Microfinance
- Drawbacks of Microfinance
- The For-Profit Controversy
- Concerns About For-Profit Microfinancing
- Clients of Microfinance
- Funding for MFIs
- Regulations for MFIs
- Goals of Microfinance Institutions
- Challenges Faced by MFIs in India
- Top Microfinance Companies in India
- Traditional Banks vs. Microfinance Institutions
- Microfinance – FAQs
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