Professional Documents
Culture Documents
Learning Outcome
• Define Microfinance
• They can then pay off their micro loan and continue to gain
income from their venture indefinitely.
Improved Standards of Living
• Microcredit ultimately aims to give poor people enough
financial stability to move from simply surviving to accruing
savings.
• The aim is to improve their status and make them more active in
decision-making, thus encouraging gender equality.
• Access to Capital
• Trickle-Down Benefits
Characteristics of Microfinance
Microfinance services are aimed at the poor clients, who do not have
access to formal financial sources. Microfinance has its unique
characteristics, which are as follows:
• As these basic needs are met, it also means that there are fewer
interruptions to the routine. People can stay more productive. Kids can
stay in school more consistently. Better healthcare can be obtained. This
creates a lower average family size because there are more
guarantees of survival in place.
• And when that happens, the possibility of future investments will occur
because there is more confidence in being able to meet basic needs.
It is a sustainable process
Repayments are reinvested into communities so that
the benefits of microfinance can be continually
enhanced.