MicroFinance

Introduction to Microfinance

Traditionally banks and Lending Institutions do not lend money to low-income Individuals

 

       The reasons being

                                                                                                            

· Lack of Information about Individuals.

· Collateral.

· High Transaction cost of processing

 

Microfinance provides a solution for the above problem.

 

 

MICROFINANCE

 

Definition : The means by which poor people convert small sums of money into large lump sums (Rutherford 1999)

 

The goals are

 

· Eradicate Extreme Poverty & Hunger.

· Achieve Universal Education.

· Promote Gender Equality & Women’s Empowerment.

· Reduce Child Mortality

· Combat Diseases

· Developing Entrepreneurial Spirit