What type of clients typically benefit from microfinance services?

Microfinance services are specifically designed to cater to individuals and small enterprises that have limited or no access to traditional banking services. This demographic typically includes the underbanked or unbanked populations, often found in developing countries. These clients may lack collateral, a credit history, or the necessary documentation required by conventional financial institutions to secure loans.

The essence of microfinance lies in its ability to provide small loans, savings accounts, and other financial services to empower entrepreneurs and marginalized individuals. By doing so, microfinance helps these clients start or expand small businesses, improve their living standards, and contribute to local economies, which can ultimately lead to sustainable economic development.

In contrast, high-net-worth individuals or corporate businesses usually have access to a wide range of financial products and services provided by traditional banks. Government agencies do not typically seek microfinance loans; instead, they may be involved in funding or promoting microfinance initiatives to support the target clients.