Micro finance: ray of hope for poor families

Microfinance means providing very inferior families with very small loans (micro credit) to help them engage in worthwhile activities/small businesses. Over time, microfinance has come to include a wider range of services (credit, savings, insurance, etc.) as we have come to recognize that the poor and the very poor that lack access to traditional formal financial institutions require a blend of financial products. Micro Finance can contribute immensely to the financial enclosure of the poor without which it will be impossible for them to come out of the vicious cycle of poverty. Microfinance is a method to promote economic development, employment and growth through the help of micro-entrepreneurs and small businesses. Proponents usually claim that microfinance lifts people out of poverty. The objective of this study is to understand the micro financing fundamentals, working techniques, principles the importance and role of microfinance in poverty mitigation, profitable agriculture activities and practices to construct relevant suggestions and conclusions.