• MD ABUL MANSUR

Microfinance has been a key instrument for financial inclusion, providing credit access to low-income individuals, especially in developing economies. However, traditional microfinance models face critical inefficiencies such as high interest rates, exploitative loan recovery methods, poor risk assessment, and limited formal banking integration. These systemic flaws often trap borrowers, particularly farmers and micro-entrepreneurs, in unsustainable debt cycles, leading to financial distress and economic instability. Additionally, the lack of technological oversight results in loan mismanagement, fraud, and over-reliance on intermediaries. This research introduces a Responsible AI-Driven Microfinance Ecosystem, replacing fixed-interest obligations with an equitable profit-sharing model. AI-driven credit scoring ensures fair loan disbursement based on borrower capacity, while blockchain technology enhances transparency and prevents unethical practices. Digital financial automation structures fund utilization, reducing misallocation, while AI-driven predictive models synchronize repayments with seasonal revenue cycles, minimizing borrower distress. Unlike conventional microfinance, this system dynamically adjusts repayment structures based on income fluctuations and market conditions, ensuring sustainability. By embedding real-time market analytics, the framework facilitates direct market access for borrowers, guaranteeing fair pricing and financial empowerment. This study critically evaluates microfinance inefficiencies, the role of Responsible AI, and the development of an adaptive, transparent financial inclusion model that fosters long-term economic stability.

Responsible Artificial Intelligence, microfinance, financial inclusion, ethical lending, transparency, blockchain, AI-driven credit scoring, sustainable finance, predictive risk assessment, market access, profit-sharing model, digital payments, smart contracts, financial automation, borrower risk profiling, equitable lending, economic empowerment, fintech, adaptive repayment structures, Forward Selling.

"A Microfinance Business Model Resonating with Responsible Artificial Intelligence for Enhancing Transparency, Sustainability and Economic Mobility", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 2, page no.a650-a658, February-2025, Available :http://www.jetir.org/papers/JETIR2502083.pdf

"A Microfinance Business Model Resonating with Responsible Artificial Intelligence for Enhancing Transparency, Sustainability and Economic Mobility", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 2, page no. ppa650-a658, February-2025, Available at : http://www.jetir.org/papers/JETIR2502083.pdf