Abstract
Microfinance is crucial for financial inclusion, poverty reduction, and economic growth in developing countries. This systematic literature review examines microfinance institution evolution, impact, and challenges using Web of Science Core Collection articles. The study found that microfinance research trends benefit SMEs, financial access, and socioeconomic development. Financial inclusion, digital finance, and sustainable development are keyword co-occurrence analysis research clusters. The study also examines how Western Europe, India, and the US influence microfinance research through international cooperation. MFIs struggle with high interest rates, legal issues, and limited technology despite their growth. Research gaps exist on microfinance technological innovations, their effects on financial service delivery, and their role in achieving the Sustainable Development Goals. The findings suggest more research on how microfinance can improve economic shock resilience and financial inclusion. Addressing these gaps will help microfinance promote global economic growth and sustainability.