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Microfinance

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  • Microfinance is a banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. 
  • Microfinance allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices. 
  •  The majority of microfinancing operations occur in developing nations, such as Uganda, Indonesia, Serbia, and Honduras.
  • Like conventional lenders, microfinanciers charge interest on loans and institute specific repayment plans.
  • The World Bank estimates that more than 500 million people have benefited from microfinance-related operations.
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