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Microfinance is the financial service that provides access to various financial services such as credit, savings, micro-insurance, remittances, leasing to low-income individuals including consumers and the self-employed, who traditionally lack access to banking and related services. The main objective is to provide a permanent access to appropriate financial services which include insurance, savings, and fund transfer. It plays a significant role in bridging the gap between the formal financial institutions and the rural poor. Micro Finance Institution has become more widely accepted and moves into main stream, the supply of services to poor may also increase, improving the efficiency and outreach while lowering the costs.
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