Abstract:
This research study is an attempt to understand the activities of microfinance in the less
developed countries and it measures the impact that microfinance has on the economies of the
less developed countries. Microfinance is defined as the small scale financial services offered to
the poorest populations, often in areas where banking options may be limited or not available at
all. MFls can be banks, cooperatives, credit unions, non-governmental organizations (NGOs), or
non-bank financial institutions. This research study has adopted both a secondary research
analysis, as well as it has adopted a qualitative analysis has been carried out. Interviews were
conducted in order to obtain the responses of the interviewees. This has provided a clear
understanding of the impact that microfinance on the less developed countries.
