Microfinance encompasses a variety of financial products, including microloans, savings accounts, insurance, and remittance services, designed to empower low-income individuals by providing them with the capital necessary to start or grow small enterprises. The concept is built on the idea that even small amounts of money can help create economic opportunities for the underserved populations. Microfinance institutions (MFIs) play a critical role in this sector by providing financial assistance with lower interest rates than traditional banks as well as financial education to their clients to ensure sustainable management of funds.