Explain the concept of microsavings in microfinance.

Economics Microfinance Questions



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Explain the concept of microsavings in microfinance.

Microsavings in microfinance refers to the practice of providing small-scale financial services, such as savings accounts, to low-income individuals who do not have access to traditional banking services. It allows individuals to save small amounts of money on a regular basis, often through informal mechanisms or community-based organizations. Microsavings aim to promote financial inclusion and help individuals build assets, manage risks, and improve their overall financial well-being. These savings can be used for emergencies, investments, or to start or expand small businesses.