“Microfinance is a term used to describe financial services, such as loans, savings, insurance and fund transfers to entrepreneurs, small businesses and individuals who lack access to traditional banking services.” Microfinance is a way to reduce poverty and improve the economic well-being of individuals through small low-interest loans. Microfinance has the potential to create a positive social impact by producing income that leads to better education, sanitary infrastructure, safe water, food, and healthcare.

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