"So Uzair, I was going through the news and I saw that India’s microfinance loan portfolio is expected to grow at 10% -15%. Every time I hear about microfinance in the media, it’s portrayed as this magical solution to poverty but what is Microfinance?" Yes Khushi, microfinance brings financial products and services to the poorest of the poor through different forms of contracts. Poor people lack funding which they would’ve otherwise used to innovate, grow and engage in economic activities. Commercial banks and mainstream financial institutions are not able to reach or efficiently provide to the huge section of society that needs small amounts of loans. The motive of microfinance institutions or MFIs is to target the poorest of the poor and help them alleviate poverty. Altruism is a constant feature of the psychology of donors for MFIs, ensures the sustainability of MFIs. Therefore, MFIs advocate for poverty alleviation through microfinance products, services, and programs lik...