What type of customers is microfinance suitable for?
Microfinance is suitable for poor but economically active people in developing countries whose business enables them to repay the loan. Local MFIs know their customers and make prior checks to prevent over-indebtedness. Microfinance is not suitable for the poorest of the poor or for people who are not economically active. In these cases other forms of direct aid and poverty alleviation may be a more adequate tool.
