Write the concept of microfinance.

Microfinance refers to the provision of a broad range of financial services—such as loans, savings, insurance, and money transfers—to low-income individuals and households who lack access to traditional banking systems. It primarily targets micro-entrepreneurs, small farmers, and informal sector workers who are often excluded from conventional financial institutions due to insufficient collateral or low income.

Key features of microfinance include:

• Small-scale lending (typically under USD 1000) to support income-generating activities.
• Group lending models (e.g., joint liability groups) to mitigate credit risk.
• Financial literacy and training to empower borrowers.
• Sustainability through repayment mechanisms and interest-based income for institutions.

Microfinance aims to reduce poverty, promote economic empowerment, and foster financial inclusion among marginalized populations. Institutions like NGOs, cooperatives, and specialized banks deliver these services, often with support from governments and international organizations.