project on micro finance
Introduction
Introduction
The Microcredit Summit 1997 defined Microcredit as programs that provide credit for self-employment and other financial and business services like savings and technical assistance to low income people. The meaning of Micro finance includes small scale financial assistance to people who work in agriculture, animal husbandry, fishing, poultry farming, trading, herding and running small or micro enterprises etc. It also renders services like insurance, group empowerment programme, and technical assistance in various income generating activities etc. According to Hidalgo-Clarie and colleagues microfinance is the set of financial services on a small scale, such as credit, savings, insurance and remittances offered to people that are excluded from bank financial services.
Microfinance is also interpreted in a broader sense and context to contain both microcredit and micro savings. It is true that sometimes the terms microcredit and microfinance are used interchangeably. The term microcredit has a narrow meaning compared to microfinance. Microcredit is the small credit or loans to low income people. The term microfinance has got a wider meaning and significance. The activities of microfinance are wider and target oriented.
Definition of Microfinance
Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their microenterprises. Microfinance services are provided by three types of sources.
Formal institutions such as rural banks and cooperatives.
Semiformal institutions, such as nongovernment organizations.
Informal sources such as money lenders and shopkeepers.
Institutional microfinance is defined that it includes micro finance services provided by both formal and semiformal institutions. Microfinance institutions are also defined as institutions whose major business is the provision of microfinance
Introduction
The Microcredit Summit 1997 defined Microcredit as programs that provide credit for self-employment and other financial and business services like savings and technical assistance to low income people. The meaning of Micro finance includes small scale financial assistance to people who work in agriculture, animal husbandry, fishing, poultry farming, trading, herding and running small or micro enterprises etc. It also renders services like insurance, group empowerment programme, and technical assistance in various income generating activities etc. According to Hidalgo-Clarie and colleagues microfinance is the set of financial services on a small scale, such as credit, savings, insurance and remittances offered to people that are excluded from bank financial services.
Microfinance is also interpreted in a broader sense and context to contain both microcredit and micro savings. It is true that sometimes the terms microcredit and microfinance are used interchangeably. The term microcredit has a narrow meaning compared to microfinance. Microcredit is the small credit or loans to low income people. The term microfinance has got a wider meaning and significance. The activities of microfinance are wider and target oriented.
Definition of Microfinance
Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their microenterprises. Microfinance services are provided by three types of sources.
Formal institutions such as rural banks and cooperatives.
Semiformal institutions, such as nongovernment organizations.
Informal sources such as money lenders and shopkeepers.
Institutional microfinance is defined that it includes micro finance services provided by both formal and semiformal institutions. Microfinance institutions are also defined as institutions whose major business is the provision of microfinance
Bibliography: Kohli, A. (2006). The State and Poverty in India. New York: Cambridge University Press. La Torre,M. & Vento, G. A. (2006). Microfinance. New York: Palgrave Macmillan. Roy, A Yunus, M. (2007).Creating a WorldWithout Poverty. New York: Public Affairs Ledgerwood, J