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Microfinance is the provision of financial services to low-income clients or solidarity
lending groups including consumers and the self-employed, who traditionally lack
access to banking and related services.
More broadly, it is a movement whose object is "a world in which as many poor and
near-poor households as possible have permanent access to an appropriate range of
high quality financial services, including not just credit but also savings, insurance,
and fund transfers." Those who promote microfinance generally believe that such
access will help poor people out of poverty.
Microfinance is a broad category of services, which includes microcredit. Microcredit
is provision of credit services to poor clients. Although microcredit is one of
the aspects of microfinance, conflation of the two terms is endemic in public discourse.
Critics often attack microcredit while referring to it indiscriminately as either
'microcredit' or 'microfinance'. Due to the broad range of microfinance services,
it is difficult to assess impact, and very few studies have tried to assess its
full impact.
Partner with us and gain:
- Integrated comprehensive solutions for the entire organization
- Robust end to end financial plug in
- Value addition of HRIS modules
- Custom fitted solutions for any Micro-finance model
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