Explain the concept of financial inclusion in microfinance.

Explain the concept of financial inclusion in microfinance.

Financial inclusion in microfinance refers to the provision of affordable and accessible financial services to individuals and businesses who are traditionally excluded from the formal banking sector. It aims to ensure that all individuals, regardless of their income level or social status, have access to basic financial services such as savings accounts, credit facilities, insurance, and payment services. Financial inclusion in microfinance plays a crucial role in promoting economic development, poverty reduction, and empowerment of marginalized communities by enabling them to save, invest, and access credit for entrepreneurial activities. It also helps in fostering financial literacy and promoting financial stability in the economy.