Microfinance

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Microfinance

Microfinance is a type of banking service that is provided to low-income individuals, or groups who would otherwise have no other access to financial services. Ultimately, the goal of microfinance is to give low-income people an opportunity.
Microfinancing is not a new concept: small microcredit operations have existed since the 18th century. 10-15% Growth forecast of MSMEs sector Global growth for the MSMEs finance sector is expected to be 10-15% in 2017 (responsAbility). More than 2.3 bln people in the world are unbanked: in response to this unmet demand, an ever-increasing number of microfinance institutions are serving the needs of broad sections of the population. 
200-250 Billion $ in 2016 This is the total outstanding microfinance loan portfolio, according to the World Bank and Deutsche Bank: 45% of these resources will be sourced from local capital markets, 40% from MFIs’ own savings activities and 15% from multilateral/private funds and specialised investment companies.
90% Of the total number of formal rms worldwide are MSMEs 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.