Microfinancing, also known as microcredit or microloans, refers to the provision of small loans, savings, and other financial services to individuals or small businesses who typically lack access to traditional banking and financial institutions. It is a form of financial inclusion aimed at empowering low-income individuals and communities, especially in developing countries, by providing them with the means to start or expand their own businesses and improve their livelihoods.

Microfinancing institutions, such as microfinance banks, non-governmental organizations (NGOs), or credit unions, offer small loan amounts that are often not available through traditional banks. These loans are typically used for income-generating activities, such as starting a small business, purchasing equipment or inventory, or investing in agricultural activities. The loans are usually accompanied by financial education and training to help borrowers develop financial literacy and business skills.

Microfinancing operates on the principle of social collateral, where borrowers are organized into small groups or communities. Instead of requiring traditional collateral like property or assets, borrowers provide social guarantees and mutual support. Group members often act as co-guarantors for each other's loans, creating a system of peer pressure and accountability.

Microfinancing has been recognized as a powerful tool for poverty reduction, women's empowerment, and fostering economic development at the grassroots level. It enables individuals who lack access to traditional financial services to build assets, generate income, and improve their standard of living.

Here are some examples of microfinancing hub portals:

Kiva - Kiva is one of the largest crowdfunding platforms for microloans. Individual lenders can provide small loans to entrepreneurs and small businesses in developing countries. Loan repayments are sent back to lenders.

MYC4 - MYC4 is a non-profit microfinance aggregator that connects individual and institutional investors to microfinance institutions (MFIs) around the world. Investors can choose from a portfolio of investment opportunities.

GlobalGiving - Through GlobalGiving, individuals and organizations can fund microfinance and small business development projects run by vetted non-profits worldwide. Projects range from women's cooperatives to youth job training.

Lendahand - Lendahand connects impact investors to sustainable businesses and projects in developing countries seeking microfinance, debt or equity. Loans are managed through cooperatives and loan officers on the ground.

MicroRate - MicroRate provides investment analytics and advisory services for impact investors interested in microfinance. Its Microfinance Investor Survey publishes trends in the microfinance investment space.

VisionFund International - VisionFund is the microfinance arm of World Vision and provides small business loans, savings, insurance and training to poor entrepreneurs and families globally.

BRAC Bank - BRAC Bank in Bangladesh has a strong microfinance portfolio. Its website allows disbursement of microloans to clients through partner organizations.