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What Is Micro Financing
What Is Micro Financing
MICRO FINANCING
INTRODUCTION
An effort of distributing small amounts of funds to poor
loans, money transfer, saving, insurance, money transfer, leasing
from few thousand Pakistani Rupees to maximum Rs.100, 000 or less than $100
Network Micro Finance Bank (NMB)
PURPOSE
Poverty Alleviation, empowering poor, reducing unemployment Low interest rate Bring innovation to economy and improve GDP Avoid dishonest money lender Encourage micro-entrepreneurship
USAGE
IFC (World Bank Groups lead investor)
$1.7 billion to microfinance (June, 2010)
International Bank for Reconstruction and Development (IBRD)/International Development Association (IDA)
dedicated $4.5 billion in support to micro and small and medium enterprise (MSME).
In Pakistan
Tameer Bank, Khushali Bank, First Microfinance Bank, Kashf Foundation (largest by loan amount and borrowers), and Damen Services
Saving facilities, Credit facilities, Insurance services, Payments/Money Transfer services
CONCLUSION
The landscape of microfinance is changing as a result of increasing understanding of how the poor use money and their diverse demands for financial services. Correspondingly, the microfinance industry is evolving into an increasingly commercial operation to serve a larger segment of the potential market. A number of challenges need to be overcome to facilitate and accelerate this process to realize the vast potential of microfinance
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