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About Microfinance

It is a type of finance that is based on the principle of providing financial services to low-income people to help them engage in productive activities, and thus find a way to get out of financial distress and appear in society as productive and effective actors.
The concept of microfinance or microcredit emerged in 1970, when social activists discussed the issue of providing small amounts of capital on the short term (small loans for these families). This idea proved to be successful and opened the door to this kind of financial services for large numbers of clients in a sustainable manner.
Over the past few decades, it became evident that low-income people need a full range of financial services that cannot be provided by an ordinary personal credit agency. The term “microfinance” is now used to refer to a wide range of financial services that are tailored to suit the needs of this category.
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