Microfinance is a financial innovation targeting underserved populations by providing small loans, savings, and insurance. Distinctive for its focus on financial inclusion and empowerment, it supports entrepreneurship and small businesses in developing economies. Despite its remarkable impact, microfinance faces challenges like high interest rates and client over-indebtedness. Emerging trends include digital microfinance platforms enhancing accessibility. As both a tool for poverty alleviation and a subject of scholarly interest, microfinance continues to evolve, reflecting a blend of grassroots finance and global development strategies.
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