Present in all parts of the world, microfinance can be seen as a key cog in the wheel which aims to provide financial inclusion in the form of affordable financial products, these products are not only limited to credit like personal loans and credit cards but also to in other products such as savings, fixed deposits and other banking services. It is one of the ways in which all round economic development can be achieved.
The most accepted and broad definition is one that defines microfinance as a micro credit offered to unemployed and those who get minimum wages as salaries. The institutions which participate in this system of micro credit are called micro finance companies.
It has been seen that now loans which are of a higher amount have been given to the groups that depend on microfinance companies. Even appliances like mobile phones which are essential for their business have been bought using loans from microfinance companies.