What is Microfinance?
“Microfinance is the provision of financial services (credit, savings, insurance, etc.) to people living in poverty, who do not have a regular salaried employment and are usually excluded from the formal financial sector.” (PlaNet Finance)
What do Microfinance institutions do?
“Microfinance institutions (MFIs) help the poor transform their entrepreneurial enterprises into self-sustaining businesses by providing them with investment capital, financial information and other services including savings and health insurance.” (Women’s World Banking)
Who provides Microfinance services?
“Microfinance services are provided by three types of sources: formal institutions, such as rural banks and cooperatives; semiformal institutions, such as nongovernmental organizations; and informal sources such as money lender and shopkeepers.” (Grameen Foundation)
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