Microfinance Note's

  What is Micrfinance?

It is providing of financial service to the low income self employed people or clients or who lacking to access the banking and related service .

Not only giving the micro credit to the poor rather than. It has an objectives is to assist poor to work their way out of poverty.

 

Characteristics of Micro finance

Microfinance services are aimed at the poor clients, who do not have access to formal financial sources? Microfinance has its unique characteristics, which are as follows:

• Mostly it is collateral free .Mostly it is collateral free.
• MFIs go to clients rather than clients going to MFIs.
•  Simplified savings and loan procedures Simplified. savings and loan procedures

Key Principles of Microfinance Key Principles of Microfinance

1. The poor need a variety of financial services, not just loans.

2. Microfinance is a powerful instrument against poverty Microfinance is a powerful instrument against 3.Microfinance means building financial systems that serve the poor serve the poor 

4. Financial sustainability is necessary to reach significant numbers of poor people number.  

5. Microfinance is about building permanent local financial institutions.

6. Micro credit is not always the answer Micro credit is not always the answer