Microfinance > What is it?

What is it? | Reports | MFI | People | Links

What is it?

From Canadian Gateway to Microfinance (www.microfinance.ca)

A lot of microfinance focuses on providing relatively small loans to very poor people who have no access to formal banking services. They may use such loans to start income generating projects and small businesses.

However, savings are also a very important part of microfinance services. Poor people save in order to reduce their vulnerability to hardship. And they need to save money for the future -- their children’s education, a business start-up and major life events, such as marriage or a funeral. They need access to secure saving services, adapted to their needs.

Other financial services such as insurance, business and home loans also play an important role in the development of communities. Not everyone is or wants to be an entrepreneur, but everyone needs access to financial services in order to participate fully in economic life.

© Trunat - Sitemap - Administration - Contact us
Compteur de visite