18 Facts About Microfinance institution

Microfinance institution is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services.

Microfinance institution includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services.

Microfinance institution services are designed to reach excluded customers, usually poorer population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient.

Microfinance institution initially had a limited definition: the provision of microloans to poor entrepreneurs and small businesses lacking access to credit.

Microfinance institution is the proper tool to reduce income inequality, allowing citizens from lower socio-economical classes to participate in the economy.

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However, Microfinance institution is not the magical solution to take people out of poverty; it is merely a tool that the poor can use to raise their prospects for an escape from poverty.

Microfinance institution practitioners have long argued that such high interest rates are simply unavoidable, because the cost of making each loan cannot be reduced below a certain level while still allowing the lender to cover costs such as offices and staff salaries.

Microfinance institution provides women around the world with financial and non-financial services, especially in the most rural areas that do not have access to traditional banking and other basic financial infrastructure.

Microfinance institution is a sustainable process that creates real jobs, opens opportunities for future investments and helps the women clients provide for the education to their children.

Microfinance institution generally agree that women should be the primary focus of service delivery.

Microfinance institution is considered a tool for socio-economic development, and can be clearly distinguished from charity.

Microfinance institution is limited by the rules and limitations surrounding money-lending.

Microfinance institution services including Easy Paisa by Telenor and Temeer Microfinance institution Bank, Jazz Cash by Jazz Telecom, and Zindigi have all been introduced by various telecom companies in Pakistan.

Partnership for Responsible Financial, previously known as the Microfinance institution CEO Working Group, is a collaborative effort of leading international organizations and their CEOs active in the microfinance and inclusive finance space, including direct microfinance practitioners, and microfinance funders.

European Microfinance institution Network was established in response to many legal and political obstacles affecting the microfinance sector in Europe.

Microfinance institution Centre has a membership of over 100 organisations, and is particularly strong in Eastern Europe, the Balkans and Central Asia.

Microfinance institution has been combined with business education and with other packages of health interventions.

Microfinance institution suggests that it happens because of the interplay between the company's mission, the cost differential between poor and unbanked wealthier clients and region specific characteristics pertaining the heterogeneity of their clientele.