Microfinance
Microfinance is the idea to provide services banks and insurance companies provide to those people who usually are not served by such businesses. It is an important form of development aid. Serving these people is usually very expensive for banks and insurance companies; that is why they usually do not do it. Speciaized NGOs like Oikocredit provide these services:
- Banking and other services are based on a personal relationship, rather than commercial interests.
- Very often, several people apply for a loan or insurance together.
As an example, microfinance allows people in underdeveloped countries to start their own businesses for their family.
Microfinance Media
- Afghanistan microfinance women Sewing (10665104743).jpg
An Afghan woman doing microfinanced sewing work
- Saving up.jpg
- Savingup
- Saving down.jpg
Saving Down
- A business in South Sudan benefiting from microfinance (6189731244).jpg
This shop in South Sudan was opened using money borrowed from the Finance Sudan Limited (FSL) Program. This program was established in 2006 as one of the only microfinance lenders in the country.
- Example of Flat Rate Loan Contract Chambak, Cambodia.JPG
Example of a loan contract, using flat rate calculation, from rural Cambodia. Loan is for 400,000 riels at 4% flat (16,000 riels) interest per month.
- Rwandan farm cooperative goats.jpg
These goats are being raised by Rwandan women as part of a farm cooperative funded by microfinance.
- Microfinance in Malawi.jpg
Women of Malawi posing with their savings box
- ESAF Bamboo product making unit in Dumka, Jharkhand.jpg
A group of Indian women have assembled to make bamboo products that they intend to resell.
Two women talk about financial matters. The woman on the right is a loan officer for the Small Enterprise Foundation (SEF). The conversation shown is taking place in Tzaneen, South Africa in February 2010.
