Empowering the Underserved: The Role of Microfinance in Poverty Alleviation and Economic Empowerment

The study explores the impact of microfinance on poverty alleviation, specifically assessing its role in providing financial access to low-income populations who lack traditional banking services. By offering services such as microloans, savings accounts, and insurance, microfinance institutions (MFIs) empower marginalized individuals, particularly women, to engage in entrepreneurial activities and contribute to community economic growth. This research investigates microfinance's effectiveness in enhancing financial inclusion, increasing household income, and promoting social development. Additionally, it addresses challenges such as high-interest rates, over-indebtedness, and the sustainability of microfinance models. Data was collected through a structured survey and analyzed using descriptive and inferential statistical methods.