The Impact of Microfinance on Poverty Reduction in Developing Countries: A Systematic Review (2015–2025)

Abstract

Objective: To systematically analyze the existing scientific evidence on the impact of microfinance on poverty reduction in developing countries, based on studies published between 2015 and 2025. Microfinance comprises a set of financial services (credit, savings, insurance, and payments) aimed at low-income individuals who are excluded from the formal banking system. Method: This study adopts a qualitative approach using documentary analysis techniques. The PRISMA method was applied, identifying a total of 153 studies in the initial search, of which 20 were selected. The inclusion criteria considered the most relevant studies on the topic published between 2015 and 2025 and indexed in the Scopus database. Results: Evidence from various studies is presented, highlighting the influence of microfinance on poverty reduction. The discussion reflects different perspectives and positions reported in the literature. Conclusions: Microfinance constitutes a relevant tool, although not sufficient on its own, for poverty reduction, particularly in rural contexts and among vulnerable populations in developing countries. However, microfinance should not be regarded as a universal solution to poverty, but rather as a complementary component within a multidimensional development approach. The evidence suggests that its impact is greater when integrated with capacity-building strategies, entrepreneurial education, access to basic services, and macroeconomic stability.