Microfinance is a type of banking service that is provided to unemployed or low-income individuals,or groups who otherwise have no other access to financial services.It is a financial service that offers loans, savings and insurance to entrepreneurs and small business owners who don’t have access to traditional sources of capital, like banks or investors.
Some of the need of Microfinance are as follows:
- Improving quality of life through the provision of inclusive and sustainable microfinance services to the economically disadvantaged people.
- Empowering rural people for attaining self-sustaining socio-economic upliftment.
- Reaching to unreached for inclusive banking for sustainable development economic promotion, livelihood improvement & Social development through microfinance plus programs.
- To sensitize and capacitate communitics through communiity organizations development resource management and equal distribution of resources.
- Participation for women and underprivileged section of the societies.
- Provide micro-finance services in rural area..
- Social mobilization to sensitize and capacitate communities through community organizations
- Act as an intermediary between development programs of government, NGOs, bi-lateral and multi-lateral projects and local.
- Enhance the capabilities of Community based organizations by organizing appropriate training and involving them as partners in development intervention process.
- Organizing different skills training programs for disseminating improved technology in tourism, agriculture, livestock and off-farm activities.
- Provide support services to local institutions for the development of agriculture, irrigation,drinking water, cottage and rural industries, forestry and alternative energy and encourage them to undertake feasible and appropriate enterprises.
- Promote equal access to opportunities, resources, ownership
- Focus on low-income households, assets-less self-employed in the informal sector to uplift their livelihood increasing involvement in economic activities and income generating activities, Besides all these financial services, it also focuses on their social development,cultural promotion, educational development, skill development & many more.