2007-02-17 20:58:12 · 4 answers · asked by aziz_wafa2005 1 in Business & Finance ➔ Other - Business & Finance
Microfinance is one of the most effective development tools in the fight against poverty.
The average amount lent in the developing countries is close to USD 1,000.
It started with (micro) credit but then products range sophisticated to deposits, insurance, debit cards and credit cards, international transfers... So all existing financial products and services but adapted to microentrepreneurs or just poorer people who could anyway not be eligible for formal banking.
I advise you to go on the CGAP and ADA websites, these are very good starting points (all links below)
One example of successful microfinance institution network is the one supported by ACCIÓN that overall use the individual methodology. You have to know that the growingly used methodology is that one and differs from the Grameen Bank usual one, which used to favour group lending.
You have to know that there are actually 2 types of microfinance: one that overall looks for financial sustainability and the other one (NGOs...) that focuses on social impact, these are rather complementary because they tend to focus on different beneficiaries.
2007-02-18 19:27:33 · answer #1 · answered by Pat le Pirate 3 · 1⤊ 0⤋
Microfinance is a term used to the process of extending small amounts of credit (microcredit) to the poor to help them engage in any entrepreneurial or productive activities. Though this term has grown to include financial services such as savings or insurance directed to the very poor as they have otherwise no means to access the formal financial institutions
The amounts given are typically smaller than that of the bank. In the US through the Small Business Program, microfinance lending program is given to small business entrepreneurs and the maximum amount given is $35,000 though the average is around $10,000.
Grameen Bank is best example of microfinance http://www.grameen-info.org/ which won for its founder the Nobel Prize in 2006
Here are some good discussion of micro finance http://en.wikipedia.org/wiki/Microfinance
http://www.microfinancegateway.com/section/faq#Q1
2007-02-17 22:33:57 · answer #2 · answered by imisidro 7 · 1⤊ 0⤋
This is the study of micro variables of finance having to target small income individuals not necessarily the 'poor'.
2016-03-04 01:44:06 · answer #3 · answered by ELIAS 1 · 1⤊ 0⤋
Perhaps you are referring to economic study. Macro economics, and, microeconomics. The first about the study of entire economies, the latter, the study of business or corporate finance.
2007-02-17 21:04:30 · answer #4 · answered by Anonymous · 0⤊ 1⤋