Microfinance

Can microfinance aid poverty reduction? This question has been asked so many times on different occasions. You might wonder what more is there to say. However, the fact is, after decades of debate, experiment and research, experts still have not reached a conclusion on this topic. At the beginning of December, 500 microfinance practitioners, regulators, associations, scholars and journalists from eight different countries gathered in Beijing, China, to discuss the prospect of microfinance in the 2016 China International Microfinance Summit. Themed “Openness and Inclusion”, the conference assessed microfinance as a method of helping individuals to lift themselves out of poverty and injected some new thoughts such as technology microfinance.…

Microfinance is the provision of financial serves to the poor people with very small business or business projects (Otero, 1999 cited in Marzys, 2006). Commercial banks are not able to cater to the financial needs of the poor people due to lack of collateral security and also due to information asymmetries and hence a very small proportion of the world population has access to financial instruments. Robinson (2001 p. 9) defines microfinance institution as small scale financial services…

They focus their discussion on Grameen Bank and BRAC, the two largest microfinance providers in Bangladesh. After assessing various field and case studies, Develtere and Huybrechts conclude that for both institutions a greater number of loans mean a lower incidence of poverty for program participations. They find that 76% of participants who have taken no loans, or only one loan, remain below the poverty line, compared to 57% who have taken five or more loans. A 1998 study by Khandker is also…

Poverty means people who are poor in the any country that need serious attention from all over the world. Poverty also relates to people with low income and really need help from someone to survive. Many people believe that poor people choose to be poor but we must understand the fact that world poverty in increasing towards the future. According to the statistic about world poverty, level is increasing year by year. Discussion over discussion has been made but still poverty in all over the…

Role Of Self Help Groups Through Micro-Finance For Poverty Alleviation. Dr. Ashok H. Shrirame, Associate Professor, Dnyanopasak Shikshan Prasarak Mandal,Parbhani. Rehman Siddiqui, Research Scholar, Swami Ramanand Teerth Marathwada University, Nanded. ABSTRACT A majority of microfinance program target underprivileged people with the goal of making them productive and self reliance. A large population of India lives without basis needs, are unproductive, poor, unbanked and uneducated. The…

all Muslims are terrorists. It also promotes the idea that if Muslims are kept busy and are benefiting somehow from the government, they may be less likely to harm the country they are benefitting from, The reasoning for helping people is then skewed. The main goal for genuinely helping poor people is lost. Civil Service Organizations set out to help poor people of Egypt however have instead led women to be in a lot of debt and dependent on others rather than their own skill and craft.…

Trade is the action of exchanging goods and services with others. Without trade, people in different parts of the world would be limited to the resources available locally. Seeing as some countries cannot support certain resources due to their climate, it is necessary to have a means of providing resources to places where they might be sparse. In her book, Factory Girls, Leslie T. Chang details the lives of young women working in the Dongguan factories in China. She attempts to approach the…

Microfinance has both pros and cons just like everything else. Microfinance can make it possible for people to move up and out of poverty and better provide for their families. Microfinance also empowers women and helps the economy. It could also make it so that some people are publicly shamed because they are unable to pay back their loans. Microfinance is a good thing because it makes it possible for people to better the lives of themselves,families, and their communities. Microfinance…

since most members would be women. We must also note that men might feel excluded, but the banks will be for everyone (Yunus, M. 1999). However, the Lenca group feel as though the government excludes them, so there will be specific banks built in their regions to provide loans and some for the Gari as well. These business ventures have the potential of producing jobs, but they also have the potential of producing failure and debt. Another negative aspect to consider is that people may not even…

Mudra Bank Loan Yojna or Pradhanmantri Mudra Yojna is a Business loan scheme tailored specifically for small scale businesses. Here, Mudra stands for Micro Unit development and Refinance Agency. The scheme was launched on 8th April 2015 to provide support to small business owners in the country. The scheme operates in three stages– Shishu, Kishore, and Tarun. In the first stage Shishu, loans are provided up to Rs. 50,000. In the second stage Kishore, loans are provided up to Rs. 5 lakh and in…