The Importance of Microfinance Institutions in the Development of Developing Countries

Osamah Ahmed AL-Maamari, P Vedava and Noufal Alrefaei
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Osamah Ahmed AL-Maamari: Mangalore University
P Vedava: Mangalore University
Noufal Alrefaei: Mangalore University

Shanlax International Journal of Economics, 2022, vol. 10, issue 4, 28-35

Abstract: This study intends to provide light on the favourable benefits of microfinance on a variety of social and economic outcomes, such as poverty reduction, job creation, economic independence for women, and long-term societal advancement. By enhancing the availability of financial and non-financial services to MSEs, we can increase their impact on the national economy. Microcredit programmes administered by non-governmental organisations (NGOs) have effectively reduced poverty in developing nations by providing loans with low-interest rates and minimal requirements for collateral. This study's methodology is based on a discussion and a review of prior research. However, the study's primary finding demonstrates that microfinance is critically essential. However, it confronts other obstacles that could restrict its contribution to long-term growth and monetary inclusion.

Keywords: Microfinance; Sustainable Development; Third World Countries; Poverty Reduction; Financial Inclusion; Women Empowerment; Entrepreneurship (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:acg:journl:v:10:y:2022:i:4:p:28-35

DOI: 10.34293/economics.v10i4.5147

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