Microfinance Definition
Microfinance refers to banking services provided to unemployed or low-income people. It gives an opportunity to save or borrow money and conclude insurance contracts for individuals who otherwise could not gain financial services. One of its most important goals is to grant very small loans to assist in establishing a businesses to become self-sufficient. Microfinance is mostly used in developing countries. The interest rates offered by microfinance institutions are usually lower than those of normal banks.