Authors : Shreeranjini K. S.

Volume/Issue : Volume 10 - 2025, Issue 2 - February

Google Scholar : https://tinyurl.com/4cyh2e3v

Scribd : https://tinyurl.com/yc4swrvc

DOI : https://doi.org/10.5281/zenodo.14937058

Abstract : This paper examines the growth and impact of microfinance as a change for financial inclusion and poverty reduction. Over the past few decades, microfinance has expanded significantly, providing low-income individuals, particularly women, with access to small loans, savings, and insurance. The paper explores the factors driving this growth, including technological innovation, the rise of mobile banking, and the increasing involvement of impact investors. It also highlights how microfinance institutions (MFIs) have evolved to offer a wider range of financial products tailored to the needs of neglected group. However, the paper also addresses the challenges facing the sector, such as over-indebtedness, high interest rates, and questions of sustainability. While microfinance has succeeded in improving access to capital for many, concerns remain about its long-term effectiveness in reducing poverty. Looking ahead, the paper discusses then impact of microfinance in entrepreneurship and entrepreneurs . The research concludes that while microfinance has played a pivotal role in promoting economic empowerment as it helps the small sector business for development and also startup companies.

Keywords : Microfinance, Poverty Reduction, Mobile Banking, MIFs.

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