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Microfinance is a term used to refer to the activity of provision of financial services to clients who are excluded from the traditional financial system on account of their lower economic status. These financial services will most commonly take the form of loans (see microcredit) and savings, though some microfinance institutions will offer other services such as insurance and payment services.
The concept of microfinance originated in Bangladesh, around 1976 through a pioneering experiment by Dr Muhammad Yunus, who was then a Professor of Economics.The primary differentiator between microfinance and the conventional credit disbursal mechanism lies in the "joint liability" concept. A group of individuals (almost always women), get together to form an association of persons. The Groups in India.for instance are called "Self Help Groups' (SHG), all the members of which undergo a training programme on the basic procedures and system requirements. Loans to individuals within the SHG, is approved by the others members of the Group , who are also jointly responsible for its repayment.The members of the SHG save regularly. To minimise the financial burden there are limits to the amount lent and the repayment is typically over 50 weeks.
Microfinance as a Development Tool
Like everyone else, people living in poverty need access to a diverse range of financial services, including loans, savings services, insurance, and money transfers. Access to financial services enables the poor to increase income and smooth consumption flows, thus expanding their asset base and reducing their vulnerability to the external shocks that plague their daily existence. The availability of financial services acts as a buffer against sudden emergencies, business risk, and seasonal slumps that can push a family into destitution. More and better financial services specifically geared towards low-income groups can help poor households to move from mere subsistence for daily survival to planning for the future and investing in better nutrition, improved living conditions, and children's health and education. More on [ Microfinance ]
RT @CGAP: CGAPâs top ten mobile banking and microfinance technology posts for 2009 http://bit.ly/7AB6P0
scottHSL (Scott Bales) Fri, 18 Dec 2009 05:58:54 -0000
RT @CGAP: CGAP’s top ten mobile banking and microfinance technology posts for 2009 http://bit.ly/7AB6P0
microfinance #kiva #microfinance #slavery #usury #microplace #onehen cast the moneychangers/ out of the temple / let the carpenter in
DonsLawnSalon (Don Dawning) Fri, 18 Dec 2009 05:09:26 -0000
microfinance #kiva #microfinance #slavery #usury #microplace #onehen cast the moneychangers/ out of the temple / let the carpenter in
Interesting thoughts on #microfinance. http://bit.ly/4AVTJv
arunlikhati (arunlikhati) Fri, 18 Dec 2009 04:56:22 -0000
Interesting thoughts on #microfinance. http://bit.ly/4AVTJv
Carsey Institute announces microfinance training program - http://bit.ly/4nXenR via @AddToAny
mffocus (Microfinance Focus) Fri, 18 Dec 2009 03:18:00 -0000
Carsey Institute announces microfinance training program - http://bit.ly/4nXenR via @AddToAny
Hyundai Motor launches microfinance organization http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/12/18/200912180094.asp
thekoreaherald (The Korea Herald) Fri, 18 Dec 2009 03:14:49 -0000
Hyundai Motor launches microfinance organization http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/12/18/200912180094.asp
Samsung opens microcredit bank in Korea to reach 200,000 people. http://bit.ly/827og6 #microfinance #korea RT @MariaSpringer
BankingWithPoor (BWTP Network) Fri, 18 Dec 2009 02:24:48 -0000
Samsung opens microcredit bank in Korea to reach 200,000 people. http://bit.ly/827og6 #microfinance #korea RT @MariaSpringer
Microcredit Summit Campaign - Conference information, international action plans, and reports on the state of microcredit in the world offered, as well as campaign newsletter, councils database, and related links. Also available in Spanish and French.
Meta Description: [ The latest on reaching 175 million of the world's poorest people with credit for self-employment and other financial and business services and having 100 million people move out of extreme poverty by 2015. The site offers networking opportunities for those in the microcredit field with best micro... ]
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Alternative Finance - Searchable library and forum for microfinance practitioners and researchers to access otherwise unpublished articles and information, sponsored by a publishing company. Also provides bulletin board of events and related links. Available in English and Spanish.
Meta Description: [ Alternative Finance Website is a microfinance forum with articles, bookshop, news, links and microfinance training tools and resources. ]
Appui au Développement Autonome (ADA) - Microfinance organization based in Luxembourg. Financial support and technical services for microfinance institutions. Publications, library and database. Specialised in French publications.
Meta Description: [ ADA offers financial support and technical services to Microfinance Institutions (MFIs) in developing countries. ADA offre un appui financier et des services techniques aux institutions de microfinance (IMF) dans les pays du Sud. ]
Discussion Forum at the Microcredit Summit - Currently operates via email and regular mail. They plan to have full discussion facilities on the website at some stage.
Global Microenterprise Initiatives, LLC - Private management consultancy company provides specialized microfinance services.
Grameen - Gateway to affiliated enterprises, foundations, and projects. Provides an overview of microcredit, annual report, newspaper articles, and newsletter.
Meta Description: [ Home page of Grameen - the organization of Professor Muhammad Yunus, inventor of micro credit. ]
Grameen Foundation USA - A nonprofit organization, who's purpose is to help the poor start self-sustaining businesses, that offers small loans, financial services and technology to needy people.
Meta Description: [ Grameen Foundation uses microfinance and
innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans, financial
services and technology, we help the poor, mostly women, start self-sustaining businesses to escape poverty. ]
Katalysis Partnership: Microcredit for Central American Women and Men - Katalysis promotes sustainable economic development by making small loans to poor entrepreneurs (mostly women) in Central America. Through its Bootstrap Banking program, it gives them the resources they need to achieve economic self-reliance for themselves, their families, and their communities.
Meta Description: [ Katalysis promotes sustainable economic development by making small loans to poor entrepreneurs (mostly women) in Central America. Through our Bootstrap Banking program, we give them the resources they need to achieve economic self-reliance for themselves, their families, and their communities. ]
Opportunity International - British charity specialised solely in microfinancial services for the developing world. Provides an overview of clients and activities, affiliated organizations, and accounts, as well as past publications.
Meta Description: [ Microfinance; Giving people credit, not charity. Opportunity International UK offers poor entrepreneurs in developing countries the tools they need to break out of poverty and support themselves. ]
The Microfinance Gateway - Portal highlighting providers, research, jobs, and events in microcredit, microinsurance, and micro enterprise in developing and transitional economies. Also provides a debate forum, FAQs, and organisation directory.
The Microinsurance Centre - Created by MicroSave-Africa to promote and provide resources for associations between insurance carriers and microfinance institutions (MFIs) active in the developing nations of Africa.
Virtual Library on Microcredit - Articles, events, and other information on alternative financial systems and related subjects such as community mobilization and enviro-economic development.
Meta Description: [ The Virtual Library on Microcredit is intended to be a repository of information on alternative, non-conventional financial systems and microcredit issues. Community mobilization and enviro-economic development also find a place here. ]
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