ABSTRACT
Microfinance is the provision of small-scale financial services to the “unbanked” sector of society, largely in the developing world. When approached commercially, it is regarded as the only development activity that has the potential to be fully sustainable. The importance of microfinance and the vital role it plays in the fight against poverty was brought to the limelight in 2006 when Professor Muhammad Yunus of Bangladesh won the Nobel Peace Prize. Winning in this particular category highlighted the importance of developing poorer communities and giving impoverished people a chance to be self-sufficient. This is crucial for global peace, prosperity and meeting the millennium development goals, which included poverty reduction targets.
