Microfinance is the provision of sustainable financial services to the poor and unbanked, including credit, savings, guarantees, insurance, transfer payments, remittances and other services.
Microfinance seeks to extend the financial market to a wider segment of the population, including young people and women. It is also seen as an instrument for reducing poverty and social vulnerability, and therefore translates fundamental ILO values into action: it opens up opportunities for better livelihoods, fosters solidarity and empowers the working poor.
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