Analysis of the Awareness of Microfinance in Developing Economies and its Impact

Abstract

Civilising human society and improving the living standard, mitigating the poverty level is a highly crucial requirement. This study is focusing on understanding the development of awareness of microfinance in developing economies. Sustainable financing is one of the roles of microfinancing which is capable of enabling financial innovation and preventing poverty. The system of microfinance helps to balance the difference between poverty and rich people in society. Microfinance companies provide small amounts of loans to the people who make them able to start small businesses but sometimes that is also not possible. High interest rates of small amounts of loans is a limitation of microfinance and a lot of people still avoid accepting loans from microfinance companies. Thus, financial services of the microfinance companies are not improved and that can enhance difficulties for the borrowers to understand the procedures properly which is another challenge. In this study “secondary data” has been used to generate a valuable and reliable outcome to draw the conclusion. Thus, effective research tools have helped the researcher to set the path of research and get the right information related to the research topic. All the research elements have made the study valuable to sustain for a long-term issue. Moreover, this study can help the readers to understand the impact of microfinancing to sustain economic growth. Keywords : Awareness, development, economy, microfinance.