The Significance of Religious Principles to Microfinance Scheme

Abstract: Microfinance is part of a much larger effort to end poverty by providing services specifically credit for self-employment and savings capabilities. Microfinance banks are important for economic progress and a key strategy in ending poverty. This study examines the integration of religious principles in microfinance schemes, investigating how faith based values influence financial inclusion, social impact and entrepreneurial outcomes. Focusing on Christian based microfinance initiatives, this research reveals that religious principles enhance borrower motivation, repayment rates and social responsibility, while fostering trust and community cohesion. This paper relies on socio-religious approach for it’s methodology and employs the use of literatures, interviews, participant observation and internet resources for data collection. The findings suggest that faith-based microfinance schemes promote financial sustainability, poverty reduction and human dignity particularly in underserved communities. This study contributes to a deeper understanding of alternative financial models that prioritize ethical and moral considerations.

 Keywords: Microfinance, Poverty reduction, Faith-based values, Financial inclusion, Entrepreneurial outcomes