Is Microfinance Beneficial or Optimistic

Abstract

MicroJinance has been established targetirtg access to .finance for poor people who are screened outfrom getting loans fromforntalJinancial instittttions d.ue to lack ofcollateral and low creditworthiness. There has undergone a treruendou,s transformation in all aspects ol microfinance, inclucling outreach and portJblio si-e, proli;feration of nicrofinance through a large number of microJinance institutions, diversification of services, new regttlatory; regime, contribution in rurctl cleveLopment, recognition of microfinance as a ntajor contriblior it1 poverty reduction etc. However, the microfinance sector is facing many challenges regarding institutional capaciQ, quality and diversi4,* of services, fallout from political and macroeconomic factors, replication of agricultural credit and so forth. The objective of this article is to Jincl out w,hether microfinance has impact on poverty reduction and econontic developmtent at all.