Everybody has a right to live happily in this world, which is, unfortunately, being thwarted by the state of poverty for few. It is to help these unfortunate ones, the concept of Microfinance arose, in where, small amounts of financial assistance, be it in the name of loans, insurance or savings scheme, is offered to help them able to provide better for them, their family, and their dreams! While every nation in this world is afflicted by some levels of poverty, the situation is critical in the developing nations and therefore, this concept can parlous benefit a majority of the people there, certainly!
To better understand this concept, let us understand the benefits it could offer to the society!
Not everyone you see begging in the streets feels satisfied to do so; a majority of them is secretly awaiting the right chance to end their poverty, which can very well happen with this concept of Microfinance. Providing them with little money, which is so satisfying for them to start a business or get an education can lead them into the path of prosperity by putting an end to their unwanted poverty forever! Since traditional financial institutions would not offer them the assistance, the rescue comes only in the form of Microfinance!
If the people of the community are provided with enough means to fulfill their practical dreams that would lead to the growth and development of the community since negativity has been put down forever.
Reduced crime rates
Lack of education and money are the main reasons for most of the crimes happening in the world, which could be very well overcome with the concept of Microfinance and therefore, a fearless community, where crime rates are very much lesser is seen on the rise!
A financial emergency, unfortunately, never comes with a prior appointment, which is more critical in the case of unprivileged ones. These poverty-stricken people do not have the opportunity to seek the conventional financial institutions to thwart the danger and therefore, end up succumbing to the emergency, which sometimes, cause them their dear lives. With the concept of Microfinance and the offering Microfinance institutions, access to the financial assistance has increased for these people, which means more dear lives will be protected, appreciably!
Increased job opportunities
Through the concept of Microfinance, if the job opportunity is provided for an individual, say helping him/her to start a small business, such as setting up of a small condiment shop, he/she might create additional job opportunities, such as recruiting an assistant to help in the daily chores. This is a small example how Microfinance can create more job opportunities thereby shrinking the unemployment factor, greatly!