Microfunding refers to the provision of financial services to financially disadvantaged people, including consumers and the self-employed. The term also refers to the practice of sustainably delivering those services. Microcredit (or loans to poor microenterprises) should not be confused with microfinance, which addresses a full range of banking needs for poor people.

More broadly, it refers to a movement that envisions “a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings,insurance, and fund transfers.”Those who promote microfinance generally believe that such access will help poor people out of poverty

Last updated on April 10, 2010 by getavision admin