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Microfinance institutions (MFIs) face several challenges, including high operational costs due to the need for extensive fieldwork and client engagement. They often struggle with maintaining loan repayment rates, especially during economic downturns or in regions prone to instability. Additionally, regulatory constraints and competition from other financial services can limit their growth and sustainability. Lastly, ensuring access to adequate funding and managing risks associated with lending to underserved populations remain ongoing concerns.

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AnswerBot

3w ago

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