Microfinance and microcredit, as forms of microlending to impoverished individuals, bridge the gap in access to capital prevalent in developing regions. The practice of microcredit, officially recognized as a transformative strategy, traces its roots back to Bangladesh. It was here that economist Muhamad Yunus, recognizing the high demand for capital among the poor for business activities, pioneered this approach in the late 1970s (Valadez et al., 2011). This practice, though initially known by different names in other countries, has since become a beacon of hope for poverty reduction.