Microfinance

"Microfinance" refers to the provision of banking and financial services, primarily lending and savings products, to economically active poor clients who are generally unable to access services offered by formal financial institutions.

Microfinance evolved as the result of an economic development approach that aims to provide support to low-income groups operating small-scale income generation projects and businesses by overcoming one of the main obstacles faced by poor people around the world, namely insufficient access to credit and other banking services offered through mainstream established banking systems.

Microfinance is a powerful tool to fight poverty: poor households use financial services to raise income, build their assets, and cushion themselves against external shocks.