Microcredit

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Microcredit

A form of lending that originated in the 1970s with small loans made to very small enterprises in Bangladesh, called micro-enterprises, with the intention of alleviating high poverty levels. Microfinance institutions (MFIs) issue micro-loans that have higher-than-normal interest rates meant to cover the high costs associated with issuing small loans. Given that the purpose of microcredit is to be a poverty relief mechanism, individuals with low credit scores who lack capital and steady employment are then able to receive loans to develop their enterprises. See: Microfinance

Microcredit

The practice of making loans to extremely poor persons to help them rise from poverty through entrepreneurship. That is, one may make a loan of, say, $25 which gives someone the start-up capital necessary to make something small to sell. Microcredit loans are usually either interest-free or carry interest that does not compound. Additionally they offer flexible repayment plans; generally one is asked to pay anything one can so long as one pays something. Microcredit is most common in the developing world; it started in Bangladesh in the 1970s. See also: Grameen Bank, Mohammed Yunus.
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In Pakistan, micro finance is proving popular amongst the growing SME sector; SMEDA, the country's SME development authority, calculates that nearly 90% of companies are SMEs, most of them operating in the informal sector, so the demand for micro finance is also growing.
To get the business off to a strong start, Centrum has executed definitive agreements to acquire the micro finance business of FirstRand Bank India (FRBI).
Karachi -- Buksh Foundation partners with KIVA Micro Finance for supporting micro entrepreneurs in meeting development sector goals and alleviating poverty in the country.Buksh Foundation has partnered with KIVA Micro Finance; a USA based nonprofit organization, operating with a global network of channeling to mobilize funding and relieve poverty, for empowering people around the world.
The most frequent question asked by people to micro finance practitioners is: "Do your borrowers pay back?
The NDIC boss, who spoke at the ongoing Kaduna International Trade Fair in Northern Nigeria, added that a total of 2.5 billion Naira (US$ 17 million) had been paid to depositors of the 103 closed Micro Finance Banks (MFBs) last December.
But while the property and mortgage unit suffered, Trustco's two other units--Micro Insurance and Technology, and Micro Finance and Education--recorded positive margins.
"We have seen a gradual increase in the livelihood of the productive families and the small business owners who have been aware and utilize the facilities of the Islamic micro finance. It is our aim to reach out and create more awareness among the people of Bahrain," she said.
The meeting brought together General Director of Development and Employment Fund, as well as representatives of the network of microfinance companies in Jordan (Tanmeyeh),National Microfinance Bank Alwatani ) , Microfund for Women, Jordan Microcredit (Tamweelcom), Ahli Microfinance Company, the Middle East Micro- credit company, Foundation for International Community Assistance (FINCA ) Jordan, the Cairo Amman Bank, Al Amin Micro Finance Company and the UNRWA's microfinance department.
Haldane McCall has made a EUR2m (USD2.6m) offer to take a 60% stake in one of Nigeriaa[euro](tm)s top micro finance banks licensed to operate across the country.
The objectives of the study are: 1) to analyze the pattern of socio--economic and educational status of SHGmembers, 2) to investigate the economic profile of SHG members, 3) to evaluate the impact assessment of micro finance through credit and asset structure, 4) to measure the role of NGOs for implementation of micro finance, and 5) to augment the strategy for better implementation of micro finance.
So for once, the speculation over what was discussed at the summit may not be just hearsay but could hopefully be an indicator that announcements regarding micro finance initiatives could be made by as early as Easter time.
Pompano Beach, FL, November 13, 2010 --(PR.com)-- Star Knowledge Technology Alliance Team LLC, a global software and solution services provider announced the availability of MF Core Micro Finance Software Solution 2.0 for implementation and deployment worldwide.