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Microfinance

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Microfinance

Microfinancing to micro and small entrepreneurs (MSMEs) is not a new concept: small microcredit operations have existed since the 18th century.

Microfinance is a type of financing service that is provided to low-income individuals or groups who would otherwise have no access to financial services.

Ultimately, the goal of microfinance is to give low-income people an opportunity.

The global market for Microfinance estimated at US$157 Billion in the year 2020, is projected to reach a revised size of US$342 Billion by 2027, growing at a CAGR (compound annual growth rate) of 11.8% over the period 2020-2027.

According to the World Bank, MSMEs account for more than 90% of the total number of formal firms worldwide, thus representing the backbone of the global economy. Two out of three full-time jobs in developing economies are provided by MSMEs.

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