" . . . The task of eradicating global poverty and its disastrous effects may seem hopeless. But it is financially poor, yet profoundly resourceful women in villages and urban centers, mothers and grandmothers, married and divorced, educated and illiterate, healthy and disabled, who are proving that poverty can be overcome. They know this because they are leading the way.

Women by the millions are taking advantage of microfinance, a broad portfolio of financial services and products targeted especially for the poor. What exactly is microfinance? In order to dispel any false assumptions, perhaps it is best to begin with what microfinance is not. Microfinance is not welfare. Nor is it a handout doled out to the poor. Microfinance is an ever-evolving selection of financial offerings including credit, savings, remittance services, and most recently, health, life and business insurance available to those who have no access to traditional financial services. Microfinance institutions (MFIs) exist because while the poor want and need these services, they have been excluded from the formal banking sector a number of reasons: they lack convenient access, they may be intimidated, illiterate, or they have no collateral to obtain a loan. In addition, traditional commercial banks hold that the transaction costs to service microloans or microdeposits exceed the break-even point, rendering them unprofitable, thus unattractive, business risks."

(excerpted from Preface, read more)