Microfinance An Emerging Important Financial Factor

Microfinance is an emerging important financial factor which supply the basic financial services to poor and low-income households and micro-enterprises. Microfinance comprises several tools such as savings, credit, leasing, insurance and cash transfers. It s role is to improve financial access of the poor and small economic players and thus help them to build assets, which means a contribution to poverty alleviation. These services are provided by a variety of institution, which can be divided into credit and saving cooperatives and association, banks, NGOs and non-financial and informal sources. . Providing financial services helps rural households to plan and manage consumption and investments, able deal with risks and improve their living conditions, health and education by smoothing household cash flow and increasing disposable family income.This paper presents an assessment of informal borrowing and lending in rural finance with a focus in its advantages and disadvantages as we ll as how it would relate to microfinance. The origin of microfinance started with the founder, Professor Muhammad Yunus who set up the special branch of Bangladesh Central Bank in Jobra Village in 1974. Later in 1983, that bank was renamed as the Grameen Banks and were awarded the Nobel Peace Prize in 2006 for their efforts to create economic and social development which provided the attention on microfinance and its power to fight poverty. The term microfinance encompasses a broadShow MoreRelatedA Research Study On Micro Finance2048 Words   |  9 PagesMicro-finance is a service provided by banks and other financial institutions in which extremely affordable and easy loans are provided to the low-income segment of the country and those people having no source of financing. It is mostly practiced in under-developed and developing countries. Micro-finance ensures that these people have a secure income source for their future. Furthermore Micro-finance serves a dual purpose of: 1. Raising the Employment level 2. Increasing the per-capita income OneRead MoreResearch proposal on impacts of microfinance in Kenya3125 Words   |  13 PagesMICROFINANCE AWARENESS AND IMPACT IN KENYA: A CASE OF NAIROBI COUNTY 1 Table of Contents CHAPTER ONE ............................................................................................................................................... 3 INTRODUCTION ............................................................................................................................................. 3 1.1 Background of the Study ................................................................Read MoreRural Marketing Strategies of Micro Finance Institutions- a View3302 Words   |  14 PagesCoimbatore-43 ABSTRACT Rural India was once considered a mere painter’s muse and not a uberous ground for business. The reason being – around 42% Indians are below poverty line earning around $1.25 a day. Addressing poverty-based issues, NGOs, Microfinance Institutions (MFIs) and social entrepreneurial organisations have emerged in a big way to provide sustainable solutions to the poor through scalable business models and also created market opportunities for business transforming the rural markets’Read MoreThe National Democratic Republic Of Nepal2460 Words   |  10 Pagessituation of Nepal. (Yogendra Prasad, 2006) Poverty is not a crime gifted in a package. There are some reasons that cannot be discarded which play a role of a catalyst in emerging poverty. As far as Nepal is concerned, the extreme geographical conditions, low level of education, lack of good governance in the community are the key factors that led to the current scenario. Poor people have no access to basic infrastructure and have no source of income generation. Due to these reasons people in rural areasRead MoreA Research On Micro Finance2042 Words   |  9 Pages EXECUTIVE SUMMARY Micro-finance is a service provided by banks and other financial institutions in which extremely affordable and easy loans are provided to the low-income segment of the country and those people having no source of financing. It is mostly practiced in under-developed and developing countries. Micro-finance ensures that these people have a secure income source for their future. Furthermore Micro-finance serves a dual purpose of: 1. Raising the Employment level 2. Increasing theRead MoreImpact of Microfinance awareness in Kenya12633 Words   |  51 PagesMICROFINANCE AWARENESS AND IMPACT IN KENYA: A CASE OF NAIROBI COUNTY Table of Contents CHAPTER ONE INTRODUCTION 1.1 Background of the Study The need for development that saw the Kenya develop several strategies and plans such as the vision 2030 and the millennium development goals has led to development of the finance sector. The need for financing of the development projects has developed microfinance institutions in the country. Microfinance has received a lot of attentionRead MoreDifferences Between Oda And The Marshall Plan3239 Words   |  13 Pagespotential of development aid to successfully deliver its official aim of improving the economic conditions and welfare of developing countries through a top-down, government approach (DAC). Emerging from this argument is the rise of the Microfinance Industry (MFI), a bottom-up approach that focuses on giving financial assistance to the poorest citizens in developing countries through numerous products and services (CGAP, 2009). This sector has experienced rapid growth over the last decade, with over 201Read MoreThe Benefits Of Mining As A Business Opportunities For Inve stment In Cameroon729 Words   |  3 Pages This paper is a speech I presented to a group of international visitors from Saudi Arabia in 2017. The purpose of the speech was to inform them of the potential and the advantages of investing in the financial sector and particularly the microfinance sector in Cameroon. Purely a Muslim country. So, this presentation will consider the social custom of the Kingdom. I all did ensure my presentation finish well ahead of prayer time. All local participants were informed to dress decently. Speech to containRead MoreSocial Capital Measurement Of Community Based Organizations Essay1946 Words   |  8 PagesSocial Capital Measurement of Community Based Organizations in Microfinance (A Case of Ethnography, Sociological Inquest and Behavioral Finance) Abstract There has been considerable and growing interest in social capital theory in current years, evidenced by its relevance to various disciplines and numerous subject areas. This interest stems from the appeal of the concept as it integrates sociology and economics, and combines a number of ideas including civic tradition, civicness, civic involvementRead MoreCapitec Bank (South Africa) Implementing the Bottom of Pyramid Strategy3341 Words   |  14 Pagesmarket. The objective of this project was to investigate the key factors that should be considered by capitec bank in South Africa servicing the microenterprise market. The focus for the study was on identifying the key factors and on investigating how the key factors were being considered. The part of the current study aimed to identify the key factors that required consideration, the focus was on Capitec bank that offered microfinance services, especially to microenterprises and low level income