What is a Microfinance Institution?
Microfinance institutions (MFIs) are financial organizations that provide small loans, savings accounts, and other financial services to low-income individuals and micro-enterprises that are typically excluded from the traditional banking system. These institutions play a crucial role in promoting financial inclusion, economic development, and poverty alleviation in developing countries. Unlike traditional banks, MFIs focus on reaching the underserved and unbanked populations, often offering financial services at a lower cost and with fewer formal requirements. This article aims to delve into the significance of microfinance institutions, their operations, and the impact they have on the global economy.
