Microfinance Business, National Financial Inclusion Driving Solution

Banking  & Finance, ActivelyShare.com — Microfinance is one type of funding assistance for the community.

The number of poor people in Indonesia is still quite high, which is around 27.55 million people as of September 2020. Microfinance is one of the financing solutions for the community, especially those with middle to lower economic profiles. Learn what microfinance is, its history, and its functions below.

What Is Microfinance?

Microfinance is a combination of words from “micro” which means micro or small scale and “finance” which means finance. So microfinance is financing to help small-scale businesses through credit that is not too large. Although the amount is not large, the nominal microfinance loan is usually sufficient to meet the needs of the borrower.

History Of Microfinance In Indonesia

Microfinance in Indonesia apparently has a long history since the Dutch colonial era. The history of microfinance in Indonesia begins with a people’s credit institution called Hulp en Spaarbank which was founded in the 19th century.

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