Abstract

This chapter explores the evolution of microfinance by reviewing existing literature. The chapter reviews the development of microfinance to understand how the concept emerged and the extent to which it has evolved. It specifically explores the history of microfinance and how it evolved in some countries before and after the emergence of Muhammad Yunus's microfinance era. The chapter concludes that the evolution of microfinance is a testament to its adaptability and resilience which started as a tool for poverty alleviation and has since transformed into a multifaceted industry that empowers marginalised individuals and communities while contributing to economic development. However, there are variations in opinions regarding the origins of microfinance as some researchers argue that it started in the 15th century, while others claim it was in the 17th or the 19th century. This analysis provides insights into how microcredit evolved into modern microfinance.