1. Microfinance

2. Objectives of MFI
Lending to poor
Offer other services
Empower women

3. How MFI Works
Individual or group loan
Community clubs
Weekly meetings

6. The Benefits of Microfinance Schemes
Poor – access to banking, credit, services
Loans to start businesses
Empower women
Employment
Alternative to moneylenders
Offers choices
Stability

7. Associated Problems Monitoring, collection Interest rates
Expensive to get started
Shady schemes
Often doesn’t lead to increased household income or consumption
Use women to get credit
Loan size negligible
High risk
Diff. to challenge macro-level w/ micro-level approach

8. Problems (cont.) Lack of effective national governance
Lack of infrastructure
Lack of demand / buying power in community
Lack of business variety
Lack of business-building

9. Recap More like to help communities Often increases stability
Recent meta-study shows progress
Way to reach poor people
Way to empower women
Many obstacles that decrease potential benefit