...Microfinance From Wikipedia, the free encyclopedia Jump to: navigation, search This article may be too technical for most readers to understand. Please help improve this article to make it understandable to non-experts, without removing the technical details. The talk page may contain suggestions. (January 2010) Community-based savings bank in Cambodia. There are a rich variety of financial institutions which serve the poor. Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services. More broadly, it is a movement whose object is "a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers."[1] Those who promote microfinance generally believe that such access will help poor people out of poverty. Microfinance is a broad category of services, which includes microcredit. Microcredit is provision of credit services to poor clients. Although microcredit is one of the aspects of microfinance, conflation of the two terms is endemic in public discourse. Critics often attack microcredit while referring to it indiscriminately as either 'microcredit' or 'microfinance'. Due to the broad range of microfinance services, it is difficult to assess impact, and very few...
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...Table of Contents Chapter one: Introduction 5 1.1 Background of the study 5 1.2 Necessity of Microfinance to people 6 1.3 Statement of the Problem 7 1.4 Rationale of the Study 7 1.5 Objectives 8 1.6 Methodology 8 1.7 Limitation of the study 9 chapter two: Literature Review 10 2.1 Micro-Finance 10 2.2 Microfinance and microcredit 10 2.3 The History of Microfinance 11 2.4 Providers and models of microfinance interventions 11 2.5 Microfinance and its impact in development 14 2.6 The impact of microfinance on poverty 16 2.7 Current debates on the impact of microfinance in development 18 2.8 Empowering Women 23 2.9 Impacts beyond the household 26 2.10 The use of the Sustainable Livelihoods Framework in impact measurement 27 2.11 Current debates about MFIs and their role in development 29 Chapter Three: A Glimpse of The Microfinance Sector in Bangladesh 33 3.1 Micro-Finance’s History and Development 33 3.2 Evolution of MFIs financing sources 34 Chapter four: Data Analysis and Interpretation 37 4.1 Hypothesis & Model 37 4.2 Respondents Information (Frequencies & Cross-Tabs) 38 4.3 Results of the Regression Analysis for Hypothesis One 43 4.4 Results of the Regression Analysis for Hypothesis Two 45 Chapter five: Findings And Conclusions 47 5.1 Findings 47 5.2 Scope for Further Research 48 5.3 Conclusion 48 References 50 Appendix - A 52 Appendix - B 55 List of Figures Figure 1:Conceptual...
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...A PROJECT ON MICRO FINANCE MANAGEMENT AND ITS ANALYSIS IN INDIA BANKING MANAGEMENT CONTENTS PAGE NO. 1. ABSTRACT 3 2. OBJECTIVE 3 3. METHODOLOGY 3 4. INTRODUCTION 4 5. EMERGENCE OF MICRO FINANCE 5 6. CLIENTS OF MICRO FINANCE 6 7. MICRO FINANCE NEED IN INDIA 6 8. MICRO FINANCING REGULATIONS IN INDIA 7 9. ACTIVITIES IN MICRO FINANCE 8 10. LEGAL REGULATIONS 9 11. GOVERNMENT ‘S ROLE IN SUPPORTING MICRO FINANCE 12 12. MICRO FINANCE SUPPORTING WOMEN 13 13. MICRO FINANCE MODELS 14 14. SUCCESS OF MICRO FINANCE IN INDIA ...
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...IMICRO-FINANCE OF MOBILE ENTREPRENEURSHIP IN NIGERIA: AN ANALYSIS OF SELECTED CASE STUDIES IN BENIN CITY BY DADA ADEYINKA PSC0709051 DEPARTMENT OF POLITICAL SCIENCE AND PUBLIC ADMINISTRATION FACULTY OF management SCIENCES UNIVERSITY OF BENIN BENIN CITY. DECEMBER, 2015. MICRO-FINANCE OF MOBILE ENTREPRENEURSHIP IN NIGERIA: AN ANALYSIS OF SELECTED CASE STUDIES IN BENIN CITY BY GLORY PSC0709051 IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE BACHELOR OF SCIENCE (B.SC) DEGREE IN POLITICAL SCIENCE AND PUBLIC ADMINISTRATION, FACULTY OF MANAGEMENT SCIENCE OF THE UNIVERSITY OF BENIN DECEMBER, 2015. CERTIFICATION This is to certify that the exercise here by described in the research work was carried out behind the Faculty of Physical Science, University of Benin, under my supervisor. ____________________ ____________________ Dr. B.E. Iyorzor Date Project Supervisor ____________________ ____________________ Dr. E.O Aiyohuyin Date Head of Department DEDICATION I dedicate this project to Almighty God who has always giving me the grace and privilege financially and otherwise to do this project and to my lovely family, who gave me moral courage in the cost of writing this project. ACKNOWLEDGEMENT This completion of this work would not have been possible if not for the support which I received from many people. My thanks...
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...International Center for Business Research Issue: Volume 2 – Apr 2013; Link: icbr.net/0204.37 Case Study Of SKS Microfinance Ltd.: India’s Lone Microfinance Company in the Stock Market Devendra Prasad Pandey1 1 MGCG University, Chitrakoot, Satna, MP, India Abstract: Started as an NGO in 1988, SKS is today a for-profit NBFC regulated by the Reserve Bank of India. As of January 31, 2013 it has 48 lakh members associated with 1307 branches. It has disbursed 26195 crore as of September 2012. SKS Microfinance operates across 17 states in the country, including Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Gujarat, Kerala, Punjab and Delhi. In August 2010, SKS completed an IPO that from the global financial perspective was a great success: it was 13 times oversubscribed, and the company's valuation reached the top of the offer band price (which initially listed the value of the company at $1.5 billion), and the share price rose 13% on its first day of trading and rose 29% within four weeks of the IPO. In the process, SKS raised $348 million in fresh capital that, in theory, was supposed to help further grow the business and allow SKS to serve more people with financial services and microcredit than it reached before the IPO. Shares of SKS Microfinance rose by over eight per cent in early trade, after the company reported a net profit of Rs 1.2 crore for the third...
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...MP A R Munich Personal RePEc Archive Attracting Microfinance Investment Funds: Promoting Microfinance Growth through Increased Investments in Kenya Jeffrey Ben Matu Duke University, International Development Program 18. April 2008 Online at http://mpra.ub.uni-muenchen.de/12084/ MPRA Paper No. 12084, posted 12. December 2008 17:42 UTC Attracting Microfinance Investment Funds: Promoting Microfinance Growth Through Increased Investments in Kenya Master’s Project Master of Arts in International Development Policy Terry Sanford Institute of Public Policy Duke University Jeffrey Ben Matu Principal Policy Advisor Dr. Graham Glenday April 18, 2008 Acknowledgements This paper could not have been written without Dr. Graham Glenday who not only served as my policy advisor, but also encouraged and challenged me to do my best. I would also like to thank my other committee members; Dr. Cory Krupp and Dr. Rosemary Fernholz for patiently guiding me through the writing process and for their suggestions and continued support. To my family and friends, I thank you for your encouragement with reading and commenting on the paper. And to my wife Sharon, for believing in me and encouraging me to never accept less than my best efforts. Finally I would like to thank Jennefer Sebstad, Leila Webster, Stefan Staschen, and Jerry Grossman for reading and making comments on my drafts. Thank you all. 2 Table of Contents List of Acronyms…………………………….…………………………………………….……………………...
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...Impact of Microfinance Institution on Nigeria Economy Ghana Christian University College SDM 201222101014 Introduction to Microfinance Mr. Sam Quinn Word Count: 2241 Dec. 2, 2014 Table of Content Pg Introduction 3 Definition of Terms 3 Concept of Microfinance 3 The Goals of Microfinance Institutions 5 Impact of Microfinance on the Economy of Nigeria 6 Negative Impact of MFIs on the country (Nigeria) 10 Conclusion Introduction Since the advent of microfinance institution in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them. The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance institution scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. The introduction of microfinance institutions in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the...
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...Microfinance in Assam: Hymns, Myths and Realities. Dr. Jyotish Bordoloi, Associate Professor, Haflong Govt. College. Ms. Brahnisikha Bordoloi,Assistant Professor, Lakhimpur Commerce College. Introduction: Microfinance has emerged as an effective method to fulfil the financial needs of small borrowers and poor sections of the society to uplift their economic conditions. In spite of creditable expansion of institutional credit network in our country majority of poor and rural population remained scarce in getting financial assistance from formal credit delivery institutions. Many credit intervention programmes floated by the government are found to be expensive, ineffective and defective. Indian experience revealed that steps taken to address the poor and poverty have not been yielding the desired result and considerable portion of aids and subsidies meant for the poor are channelized to affluent sections. Institutional mechanism involved in financing the poor through different developmental schemes unsuccessful in doing much to improve the situation and in fact many new problems arise in course of doing so. Poor recovery and siphoning of funds meant for poor have affected not only the viability of developmental schemes but also the profitability of the institutions. The shortcomings and failures of financial institutions and poverty alleviation and development programmes to meet the needs of needy small and poor borrowers kindle the micro finance concept. The...
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...China Microfinance Industry Assessment Report By He Guangwen, Du Xiaoshan, Bai Chengyu, and Li Zhanwu China Association of Microfinance Feb. 17, 2009 This report has been jointly accomplished by Prof. He Guangwen, Director of Rural Finance and Investment Research Center of China Agricultural University (CAU), Prof. Du Xiaoshan, Deputy Director of Rural Development Institute of China Academy of Social Sciences (CASS) and Chairman of Board of Directors of China Association of Microfinance (CAM), Mr. Bai Chengyu, Director of Division III of China International Centre for Economic and Technical Exchange (CICETE) and Secretary General of CAM with the support of the Network Strengthening Program (NSP) of CAM. Mr. Li Zhanwu, Division Director of Ministry of Human Resource and Social Security, Dr. Li Lili of Henan University of Finance and Economics, Dr. Zhang Zhengping, Associate Professor of Beijing Technology and Business University, Dr. Yang Jing of Beijing Material College, and Li Yaning, Yang Lu and Wang Dan from CAU have also joined the research work. Besides, this report has obtained the guidance and assistance from Ms. Wang Dan, Managing Deputy Secretary General of CAM, and the experts of SEEP. Mrs. Wang Li, President of Social Responsibility Department of Citi China has provided strong administrative and professional support. Hereby, special thanks should be given to the above fellows. For more information, pls contact Prof. He Guangwen at heguangwen@sina.com 1 ...
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...Lack of education deprives people from voicing their feelings, needs and demands to the state authorities and they continue to suffer. They suffer from malnutrition and under nutrition so easily fall prey to serious health issues due to reduced immunity power. Poverty is also defined by another parameter which is per-capita/per-day income, which as per World Bank parameter is an income of less than 1.25$. In India this figure stands at Rs. 28/- and...
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...Microfinance Industry in India Lok Capital March 2010 Microfinance Industry in India 2 March 2010 EXECUTIVE SUMMARY • The microfinance sector in India has developed a successful and sustainable business model which has been able to overcome challenges traditionally faced by the financial services sector in servicing the low income population by catering to its specific needs, capacities and leveraging preexisting community support networks. As of March 2009, microfinance institutions (“MFIs”) in India reached over 22 million borrowers and had a portfolio outstanding in excess of $2.3 billion. The microfinance business model in India typically generates a Return on Equity (“ROE”) of between 20% and 30%, driven by financing from commercial banks, strong operating efficiency and high portfolio quality.1 Despite achieving rapid growth with a CAGR of 86% in loan portfolio outstanding and 96% in borrowers over the last five years, the microfinance sector still faces a large unmet demand which means that it still has great potential for continued growth. The microfinance sector is maturing and beginning to diversify its product and service base to address other unmet financial and non-financial needs of the low income population either directly or by acting as a conduit for third-party providers – savings, insurance, remittance and low cost education and healthcare services being some of the key examples. Given this growth and maturity dynamic, the Indian...
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...The introduction of microfinance banks in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the rural poor. Microfinance banks have taken up the challenges of the gap created by the Nigerian Deposit Money Banks. Microfinance banks can be seen as an economic growth method intended to advantage the low income part of a given country like Nigeria, both rural poor and urban poor. Since the advent of microfinance banking in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance banking scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. This paper theoretically examines the impact of this institutions to Nigeria as a country. International Journal of Finance and Accounting Concept of Microfinance Microfinance pertain to the lending...
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...INTRODUCTION In the modern world, microfinance has been recognized as one of the most innovative tools for a sustainable economic development. In the last decade, the discussions on microfinance at the international have been multiplied because this type of financial services does not simply arouse interests about the financial world, but also about numerous political and social matters. Many times, diverse scholars expressed different innovative techniques for alleviating poverty, but the microloan idea provided by professor Dr. Muhammad Yunus, seemed to work better in driving the people away from the poverty traps. Hence, microfinance institutions are alternative financial service providers that usually offer financial services to the low-income...
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...AMRITA BUSINESS SCHOOL, BENGALURU | MICROFINANCE INSTITUTIONS | MARKET RESEARCH PROJECT | | | Contents LIST OF TABLES 2 INTRODUCTION 2 WHY MICROFINANCE? 3 MICRO FINANCE SERVICE PROVIDERS 4 THE EMERGENCE OF PRIVATE MICROFINANCE INDUSTRY 4 MICRO FINANCE IS ALL AROUND US 5 LITRETURE REVIEW 6 SUMMARY OF Y. H. MALEGAM COMMITTEE REPORT 2011 14 Why Malegam Committee Report was Set up? 15 Key recommendation 16 PROFIT AND NON PROFIT ORGANIZATION 21 Differences between for-profit MFI’s and non-profit MFI’s 23 For Profit MFI 23 Non Profit MFI 24 METHODOLOGY 25 CAPITAL STRUCTURE AND ASSET ALLOCATION 25 DEPTH AND BREADTH OF OUTREACH 27 EFFICIENCY 28 PRODUCTIVITY 29 QUALITY OF THE PORTFOLIO 31 ANALYSIS OF NUMBER OF ACTIVE BORROWERS 33 PROFITABILITY AND SUSTAINABILITY 35 CONCLUSION 36 REFERENCES 36 LIST OF TABLES Table 1 Table of Comparision 12 Table 2 Comparison of Debt Equity Ratio 25 Table 3 Debt Equity Ratio 26 Table 4 Comparison of Depth and Breadth of MFIs for the year 2012 with 2010 27 Table 5 Comparison of Depth and Breadth of MFIs for the year 2011 with 2010 27 Table 6 Operating Expense / Loan Portfolio 28 Table 7 Industry Standard for Operating Expense / Loan Portfolio 29 Table 8 Productivity of MFI’s for the year 2010 29 Table 9 Productivity of MFI’s for the year 2011 30 Table 10 Industry standards for year 2010 30 Table 11 Quality of portfolio for the year 2010 31 Table...
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...Urban Microfinance 9 5. Financial Inclusion in India 11 6. Microfinance as an Anti-Poverty Vaccine 15 7. Transformation of Microfinance in India 19 8. Scaling up Microfinance 22 9. Microfinance in India - A Tool For Poverty Reduction 26 10. SWOT Analysis of Microfinance 29 11. Delivery Models of Microfinance 32 12. Interest Rates in MFIs and prevailing trends 36 13. Scope of further study 42 14. Conclusion 44 15. Bibliography 46 OBJECTIVE OF THIS PROJECT WORK This project work tries to outline the prevailing condition of the Microfinance in India in the light of its emergence till now. Microfinance refers to small savings, credit and insurance services extended to socially and economically disadvantaged segments of society. It is emerging as a powerful tool for poverty alleviation in India. The prospect of Micro-Finance is dominated by SHGs (Self Help Groups) - Banks linkage Program. Its main aim is to provide a cost effective mechanism for providing financial services to the poor. To understand the transformation experiences better, the issues that trigger transformation were identified viz.: size, diversity of services, financial sustainability and focus. It is argued that the transformation experiences in India are not large in number. However, I found that there are three forms of organizations that seem to be popular in the microfinance sector...
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