How Do You Spell MICROFINANCE?

Pronunciation: [mˌa͡ɪkɹə͡ʊfa͡ɪnˈans] (IPA)

Microfinance is a term used to describe financial services offered to low-income individuals or groups who are usually excluded from traditional financial services. The spelling of the word microfinance is based on the International Phonetic Alphabet (IPA) phonetic transcription system. The word is spelled as /maɪkrəʊˈfaɪnəns/, with the stress on the second syllable. The first syllable is pronounced as "my-kroh," while the second syllable is pronounced as "fy-nuhns." The word's spelling allows for correct pronunciation and understanding of its meaning.

Meaning and Definition
Common Misspellings
Etymology
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MICROFINANCE Meaning and Definition

  1. Microfinance refers to a set of financial services that are provided to low-income individuals and microenterprises who lack access to traditional banking facilities. It involves offering small loans, savings accounts, insurance, and other financial products specifically designed for the economically marginalized population. The primary objective of microfinance is to alleviate poverty, promote entrepreneurship, and empower individuals to improve their livelihoods.

    Typically, microfinance institutions (MFIs) provide small loans known as microcredits to individuals who are not eligible for conventional loans due to their limited collateral or financial history. These loans are often used to finance income-generating activities or small businesses, thus giving borrowers the opportunity to generate income and gradually lift themselves out of poverty. Microfinance also aims to encourage financial inclusion, as it enables individuals to build savings through accessible savings accounts and obtain insurance coverage to protect against unforeseen circumstances.

    Microfinance works on the principles of financial sustainability, social impact, and empowerment. By providing financial services tailored to the needs of low-income individuals, microfinance aims to strengthen their economic resilience and improve their overall well-being. Moreover, it can enhance financial literacy and empower individuals to make informed decisions regarding their personal finances. From a broader perspective, microfinance plays a crucial role in promoting inclusive economic growth and reducing income inequality in societies where traditional financial institutions often fail to reach those most in need.

Common Misspellings for MICROFINANCE

Etymology of MICROFINANCE

The word "microfinance" is a compound term originating from the combination of two words: "micro" and "finance".

1. Micro: term "micro" is derived from the Greek word "mikros", which means "small". In the context of microfinance, it refers to the small-scale financial services provided to individuals who typically lack access to traditional banking services.

2. Finance: word "finance" has its roots in the Middle English term "finanz" and the Old French word "finance", both of which mean "payment" or "ending". It further traces back to the Latin word "finis", meaning "end" or "settlement". In the modern sense, finance refers to the management, study, and provision of funds or capital.

The combination of "micro" and "finance" reflects the focus on small-scale financial services aimed at improving financial inclusion and empowering individuals with limited financial resources.