Microfinance Bank

. Definition of Microfinance The first step in conducting an evaluation of a microfinance program is, perhaps surprisingly, to ensure that you are conducting an evaluation of a microfinance program. This seems obvious, nevertheless is non, since the definition of microfinance is less than clear. Broadly speaking, microfinance for loans (i.e., microcredit) is the provision of low-tonedscale financial run to people who lack access to traditional banking go. The term microfinance usually implies very small loans to low-income clients for selfemployment, often with the simultaneous collection of small amounts of savings. How we define small and unretentive affects what does and does not constitute microfinance. Microfinance by its name clearly is about more than just credit, differently we should always call it microcredit. Many programs offer stand-alone savings products, and remittances and insurance are becoming popular innovations in the suite of services offered by financial institutions for the abject. In fact, it is no longer exclusively institutions for the poor that offer microfinance services.

Commercial banks and insurance companies are beginning to go downscale to reach new markets, consumer durables companies are tar throwing the poor with microcredit schemes, and even Wal-Mart is offering remittances services. Hence, not all programs labeled as microfinance will fit everybodys perception of the term, depending on model, target group, and services offered. For example, one recent study collectively refers to programs as varied as rice lenders, buffalo lenders, savings groups, and womens groups as microfinance institutions (Kaboski and Townsend 2005). other study, Karlan and Zinman (2006b), examines the impact of consumer credit in South Africa that targets employed individuals, not microentrepreneurs. Surely these are all programs worthy of close examination, only if by labeling them as microfinance programs, the researchers are making an... If you want to get a full essay, order it on our website: Orderessay

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