JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
Microfinance and Financial Inclusion: A Catalyst for Economic Empowerment
Mrs. Renuka. G M.
Microfinance has become a powerful tool for promoting financial inclusion, especially for underserved communities. By offering access to microloans, micro-savings, and micro-insurance, microfinance institutions (MFIs) empower both individuals and small enterprises, which in turn aids in reducing poverty and fostering economic growth. This study investigates the complex connection between microfinance and financial inclusion, analysing its effects on various social and economic indicators such as income enhancement, job creation, and the empowerment of women. Additionally, the research looks into the obstacles that MFIs encounter, including high operational expenses, the risk of loan defaults, and regulatory challenges. To improve the efficacy of microfinance, this study suggests potential solutions like integrating digital financial services, implementing financial education programs, and developing effective risk management approaches. By grasping the diverse aspects of microfinance, stakeholders including policymakers, practitioners, and researchers can collaborate to maximize its capacity for social and economic change.
Microfinance, Financial Inclusion, Poverty Reduction, Economic Growth, Microloans, Micro-savings, Micro-insurance, Women Empowerment, Operational Challenges, Risk Management, Digital Financial Services, Financial Education, Underserved Communities, Microfinance Institutions (MFIs), Income Enhancement, Job Creation, Regulatory Challenges, Stakeholder Collaboration