Microfinance institutions provide small loans to low-income individuals to help them improve their financial situation. These loans can be used for starting businesses or meeting daily needs. Research shows that microfinance plays a significant role in reducing poverty and empowering disadvantaged communities. Countries like India and Bangladesh are actively promoting the establishment of formal microfinance networks to support the poor. Microfinance includes services like loans, savings, and insurance for people in rural and urban areas. By offering financial support to those in need, microfinance institutions help individuals increase their income and enhance their quality of life.