A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance.
Microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services.
Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services.