Category:Microfinance
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Microcredit banking offers business training, peer support, and small loans (even only a few dollars) to the world’s poorest people. It has been extremely successful at driving sustainable development. Microfinance is a form of Socially responsible investing.
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[edit] Integral part of development
Microfinance is not a complete solution to development problems, but can be an integral part. For example, microcredit is used in the Slum NetworkingWP model, to enable facilities to be built by the slum community without relying on subsidies.
[edit] Agricultural microfinance
Livestock are used in innovative microfinance schemes such as "Cow Banks" and "Rice Banks"[1] They can be a valuable tool in development.
[edit] Emancipation loans
Emancipation loans are used to release people from difficult situations, such as owing a large debt to a moneylender, and thus having no capital, and no means to repay the debt, in spite of hard work. The emancipation loan pays off the debt and releases the financial pressure, and they can then participate in other microfinance activities. Repayment of this debt is deferred until the borrower's situation has improved; the time to begin repayment is decided jointly by the borrowers group (typically 5 people) to which she/he belongs. This is practised by the Grameen BankWP as well as other MFIs (microfinance institutions).
[edit] Footnotes and references
See Also: Socially responsible investing
- ↑ Cow Banks – what are they? & - Ockenden Cambodia. accessed 15 December 2006
Articles in category "Microfinance"
There are 5 articles in this category.
