By some estimates, more than half the world’s population does not have access to basic financial services. In many developing countries, the opportunity to take out and repay a loan does not exist, and this lack of access to credit perpetuates the cycle of poverty and stagnates a country’s economic growth. Microfinancing, a type of financial service designed for people with little in the way of capital or collateral, is offering a way for poor people to finance their businesses and lift themselves out of poverty. But some critics believe microfinancing takes advantage of the very people it purports to assist. So what is microfinancing, and does it have the potential to better the world? Here’s a quick guide. See full Article.
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