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The Africa Microfinance Network (AFMIN) is an association of microfinance networks in Africa resulting from an initiative led by African microfinance practitioners to create and strengthen country-level microfinance networks for the purpose of establishing shared performance standards, institutional capacity and policy change.
Unintended consequences of microfinance include informal intermediation: some entrepreneurial borrowers may become informal intermediaries between microfinance initiatives and poorer micro-entrepreneurs. Those who more easily qualify for microfinance may split loans into smaller credit to even poorer borrowers.
Community banking is a form of empowerment-based economics which falls under the larger umbrella of micro-finance.Micro-finance as a whole is focused on the entrepreneurship of individuals, generally with a goal of lifting low-income or disadvantaged groups out of poverty and providing the means for them to prosper. [3]
Microfinance has also provided non-farming rural citizens with employment opportunities by allowing them to more easily launch small businesses, such as carpentry and food vending. [ citation needed ] Although the adoption of this economic practice is somewhat low in rural households, studies show that if fully adopted, microfinance could ...
Microfinance has since come under fire for not being able to deliver on its lofty goals, yet some analysts argue that offering access to financial services still makes a difference to the poor.
Village bank loans typically use market interest rates. A 2006 study of 71 microfinance institutions engaged in village banking found an average portfolio yield of 27.7%, after adjusting for local inflation. [8] The village bank itself will usually mark up this rate when it on-lends to individual members.
Micro finance Institutions, also known as MFIs, [11] a microfinance institution is an organisation that offers financial services to low income people. Almost all give loans to their members, and many offer insurance, deposit and other services. A great scale of organisations are regarded as microfinance institutes. They are those that offer ...
The micro-finance model of Grameen has proved versatile and has adapted well to the customs of many countries. As Grameen continued to grow, it branched out into new projects to aid the poor. In 1986 [2] Grameen acquired 783 ponds to eventually start a Fisheries Foundation, utilizing previously unused resources while providing jobs for the ...