The MFI is related to finances and lending loans and other financial services to the people. MFI full form is Micro Finance Institutions. The Micro Finance Institutions specialize in banking activities and are known to provide financial assistance to people with low income. MFI plays a crucial role for people who cannot access traditional banking facilities. Its main role is to encourage the economic development of the low-income masses. As per studies, MFI is one of the effective tools that has played a vital role in reducing poverty and enabling economic growth in many parts of the world.
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MFI Full Form: Objective
As know you know the MFI full form. They are the type of financial companies that offer banking services such as small loans, insurance, saving accounts, etc., especially to people who are not exposed to the proper banking facilities and services. The amount of small loans varies from country to country.
Talking about India, a loan amount below Rs. 1 Lakh is considered a small loan. Such small loans are also known as microloans. The purpose of the MFI is to strengthen the economically weaker sector of the society. It provides them the chance to build credit so that people can become financially stable. In the broader sense, MFI works for the overall economic development of the country.
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Following is the list of services offered by Micro Finance Institutions:
- Financial education
- Business Development Services
- Agricultural Finance
- Group Lending
- Home Loans
- Youth Financial Services
- Women’s Empowerment Programs
- Flexible Repayment Terms
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