Microfinance has evolved as an economic development approach intended to benefit low-income women and men. The term refers to the provision of financial services to low-income clients, including the self-employed. This course provides a road map for business executives and investors thinking about greater involvement in inclusive finance. The map looks something like this. | Micro Financing & Micro Leasing An Introduction Textbooks Microfinance Handbook: An Institutional and Financial Perspective (Sustainable Banking With the Poor) by Joanna Ledgerwood Microfinance for Bankers and Investors: Understanding the Opportunities and Challenges of the Market at the Bottom of the Pyramid by Elisabeth Rhyne Microfinance Defined Microfinance has evolved as an economic development approach intended to benefit low-income women and men. The term refers to the provision of financial services to low-income clients, including the self-employed. Microfinance Defined Financial services generally include savings and credit; however, some microfinance organizations also provide insurance and payment services. Microfinance Defined In addition to financial intermediation, many MFIs provide social intermediation services such as group formation, development of self confidence, and training in financial literacy and management capabilities among members of a group. Microfinance | Micro Financing & Micro Leasing An Introduction Textbooks Microfinance Handbook: An Institutional and Financial Perspective (Sustainable Banking With the Poor) by Joanna Ledgerwood Microfinance for Bankers and Investors: Understanding the Opportunities and Challenges of the Market at the Bottom of the Pyramid by Elisabeth Rhyne Microfinance Defined Microfinance has evolved as an economic development approach intended to benefit low-income women and men. The term refers to the provision of financial services to low-income clients, including the self-employed. Microfinance Defined Financial services generally include savings and credit; however, some microfinance organizations also provide insurance and payment services. Microfinance Defined In addition to financial intermediation, many MFIs provide social intermediation services such as group formation, development of self confidence, and training in financial literacy and management capabilities among members of a group. Microfinance Defined Thus the definition of microfinance often includes both financial intermediation and social intermediation. Microfinance Defined Microfinance is not simply banking, it is a development tool. Microfinance activities usually involve: Small loans, typically for working capital Informal appraisal of borrowers and investments Microfinance Defined Collateral substitutes, such as group guarantees or compulsory savings Access to repeat and larger loans, based on repayment performance Streamlined loan disbursement and monitoring Secure savings products. Microfinance Defined Although some MFIs provide enterprise development services, such as skills training and marketing, and social services, such as literacy training and health care, these are not generally included in the definition of microfinance. Microfinance Defined MFIs can be nongovernmental organizations (NGOs), savings and loan cooperatives, credit unions, government banks, commercial banks, or nonbank financial institutions.
