Microfinance is a financial service that provides small loans, savings, insurance, and other financial products to low-income individuals or small businesses who typically lack access to traditional banking services. The goal of microfinance is to empower individuals to improve their financial situations, often by supporting entrepreneurship and small-scale business ventures. By offering these small loans and services, microfinance institutions help people increase their income, reduce vulnerability, and ultimately contribute to economic growth and poverty alleviation.