Microfinance is a financing strategy that primarily targets the socially or economically marginalized populace that has little or no access to financial services. It enables people to take on modest small business loans safely and in accordance with ethical lending principles. It encompasses microcredit (the provision of microloans to financially ‘excluded’ members of society), savings and checking accounts, micro-insurance, and payment systems, among other things. Microfinance software is a smart tool for microfinance institutions, who can use the software to ensure systematic and thorough execution of the numerous financial services they offer.
What is Microfinance Software?
Microfinance institutions provide financial services to the unbanked sector of society and to small businesses with small-ticket loans. The definition of "small loans" differs across countries. In India, any loans under Rs.1 lakh are considered microloans. The software aids Microfinance institutions in simplifying the complex procedures involved in the credit lending process -- documentation, underwriting, authentication, etc.
The software gives microfinance institutions effective micro banking capability to offer various financial services like opening and maintaining a savings account, micro loan management, documentation, underwriting, etc to the unbanked population of the nation. Microfinance institutions have access to financial resources for a large number of unbanked people who have no prior credit history.
Source Link: https://www.scoreme.in/micro-finance-software
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