The Role of Microfinance in Poverty Alleviation: Evaluating Economic Outcomes in Low-Income Regions

Abstract

microfinance's impact on low-income areas' economies is the primary focus here as we examine its function in fighting poverty. A growing number of people are looking to microfinance institutions (MFIs) to help alleviate poverty by opening savings accounts, lending small amounts of money, and even offering insurance to those who cannot otherwise afford it. the impact of microfinance initiatives on economically disadvantaged areas, namely in terms of raising incomes, creating jobs, and empowering individuals. This research looks at the effects of microfinance on important economic variables including family income, asset accumulation, and healthcare and education access through the use of case studies, quantitative data analysis, and field surveys. Microfinance may have helped some people financially, but the results are varied when it comes to reducing poverty on a national or even regional scale. finds problems with MFIs include exorbitant interest rates, repayment difficulties, and their long-term viability. Microfinance has the potential to alleviate poverty in certain contexts, and this research aims to shed light on such conditions while also suggesting ways to improve its effectiveness, such as through more targeted programs, changes to policies, and increased financial literacy.