Inclusive Microfinance: ensuring the access to mainstream microfinance services for Persons with disabilities

Persons with Disabilities Who are they?

 Persons with disabilities include those who have long-term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others. (Art. 1) Definition from the UNCRPD

Personal factors Life Habits Human Developmental Model Facilitator - Obstacles Environmental Factors Capabilities Ability – Funct. impairment Organic systems Integrity - Impairment Social Participation - Disabling Situation Interactions Adapted from Handicap Creation process - Fougeyrollas et al., 1997

Facts and figures  10% - 12% of the world’s population has some form of impairment disability (over 600 millions people)  80% live in low-income countries  82% of Pwd live below the poverty line  80% of Pwd of working age are unemployed  Women with disabilities are generally worse off than men with disabilities  The majority of Pwd in developing countries live in rural areas  Pwd have a higher rate of unemployment than the rest of the population

Employment Social security resources / safety net Self-employment Livelihood opportunities  Lack of opportunities in the job market  Exist only in some developed countries  Most often the only option available : 80% of the Pwds who have an economic activity are self-employed

The barriers to access MF services “We haven’t thought about it.” “There is probably not so many disabled persons running viable businesses.” “We don’t have any knowledge on how to serve this segment.” “We need special products to serve this segment.“ “We are to busy to think about this” From Microfinance institutionsFrom Persons with disabilities “MFI are money hunters” “Borrowing money is too risky” “Because of our situation, we should receive grants” “What is microfinance?” “They would always refuse to consider us as clients” “I can’t even access their nearest branch”

The barriers to access MF services DiscriminationSelf-exclusion Lack of self-esteem Lack of saving culture Adverse to risk Habit of being rejected Expectation of charity Lack of information on the existence of the MF services Lack if understanding of MF mechanisms Reluctance from staff to serve Persons with disabilities (deliberately or unconsciously) Physical barriers to access the MF services Exclusion by group of borrowers No communication aiming at Persons with disabilities Financial products do not suit

Including disabled clients in communication materials What MFI can do !

What MFI can do ! Making MF branch accessible

Recruiting Persons with disabilities What MFI can do !

What MFI can do ! Make public success stories of disabled clients

What MFI can do ! Training for MFI staff Communication from MFI director to all MFI staff (newsletter or special letter) Special conditions to groups which include disabled members Bonus for Loan officer reaching out Pwd Identify existing disabled clients and get them to recommend new clients

« Should we do all of this alone? » Partnering with actors of the disability sector: IDDC members: CBM, NAD, Leonard Cheshire International, Handicap international, etc. Disabled people organisation: federation or local organisation (depends on capacities) With the support of the Microfinance for all Network

« Should we do all of this alone? » Actors of the disability sector are able to Conduct staff training Contribute to MFI outreach programme Prepare future clients (graduating scheme) Help make MFI branches accessible Contribute to recruitment of Persons with disabilities Help designing communication material Gathering documentation and tools ( Microfinance for all Network ) Accessing new sources of funds from donors