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Role of Microfinance Institutions in Economic Development

Year: 2025

Type: article

Abstract: In a development perspective, microfinancehas evolved into a program for women’s economicempowerment and poverty alleviation. One of themost successful methods for enabling the financialinclusion of the poor is microfinance. Microfinancecompanies in India have played a critical role inexpanding access to financial services for lowincome households, especially women. This hasessentially meant offering no-collateral loans tofinancially underprivileged women, who arefrequently grouped into self-help or joint liabilitygroups. The not-for-profit sector was wheremicrofinance first emerged. The majority ofMicrofinance Institutions (MFIs) that were foundedin the middle of the 1990s were nonprofit charitytrusts and societies. They eventually changed intofor-profit Non-Banking Financial Companies asthey expanded because this was necessary for themto draw risk capital. When social enterprises started

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.17283412

Author: ideal research review

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Decent work and economic growth, Reduced inequalities, Gender equality

Open Access status: green

OpenAlex ID: W7084987895

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