Microfinance

Microfinance is a financial services category that targets individuals and small businesses who lack access to traditional banking and related services. Microfinance comprises micro-credit, small loans for disadvantaged borrowers, savings and checking accounts, micro-insurance, and payment systems, among other branches. Microfinance is a financial services category that targets individuals and small businesses who lack access to traditional banking and related services. Microfinance requires microcredit, the provision of small loans to vulnerable client Microfinance services aims at excluded customers, typically poorer segments of the population, probably socially disadvantaged. Initially, microfinance had a narrow concept-the distribution of micro-credits to poor entrepreneurs and small businesses with no access to credit.