ABSTRACT
Over the past three decades, people around the world trying to implement successful development policies and strategies for poverty reduction have considered the benefits of microfinance carefully. Ledgerwood considers microfinance to be a development tool which includes financial and social intermediation for ‘the provision of financial services to low income clients, including the self-employed’ (Ledgerwood, 1998: 1). Financial services may not only denote savings and credits, but also insurance and payment services. On the other hand, social intermediation services include group formation, development of self-confidence and training in financial literacy among members. Such microfinance practices are provided by what are called microfinance institutions (MFIs).
