Microfinance institutions (MFIs) are organizations that provide financial services to low-income individuals or communities who typically lack access to traditional banking. These services often include small loans, savings accounts, and insurance products, aimed at helping people start or grow small businesses and improve their livelihoods. MFIs play a crucial role in promoting economic development by empowering entrepreneurs and fostering financial inclusion. By offering affordable credit and financial education, they help individuals build assets, increase income, and ultimately contribute to their local economies, reducing poverty and enhancing overall well-being.