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Micro-financing refers to providing financial services to low-income groups and aspiring entrepreneurs who lack access to banking.
It aims to empower economically weaker sections—often due to a lack of collateral, credit history, or a steady income.
Micro Financing Institutions enable individuals to generate income, create jobs, and support their families.
Microcredit includes providing small loans without collateral to individuals or groups to start or expand their businesses.
Micro-insurance is a component of micro-financing that provides low-cost insurance products to economically weaker sections or low-income communities.
Microfinance institutions offer micro savings services, enabling individuals to save small amounts regularly.
Microfinance plays a crucial role in combining financial literacy with capacity-building initiatives. These programs educate borrowers on money management.