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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He concluded that micro finance was the potent tool for poverty alleviation.
However, that is because there is no specific micro finance regulatory framework in the country, that is the only window that we can be fitted in, for us to operate," Heita said.
She added Buksh Foundation works with diverse partners functioning across Pakistan to improve the quality of life for the rural communities of the country, making them self-reliant in getting access to micro finance loans, and help them for a better standard of living.
They begged to stay with the micro finance even though the size of the loans available is limited.
Over the phone from Yemen, the executive director of the Al-Amal Bank for micro credit, Muhammad Lai, briefed the meeting on the Al-Amal Bank and its experience in the application of micro finance, product development, training, and the growing number of clients, as well as plans for the bank's future expansion in rural areas of Yemen.
Jacob Afolabi, noted that as part of efforts to sanitise and strengthen the microfinance banks and primary mortgage banks across the nation, the Corporation had revoked the licences of the 103 failed Micro finance Banks and the 25 primary mortgage banks as well as the revision of the micro finance policy.
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.
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.
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.
This study takes a critical look at the impact of micro finance banks on poverty reduction in Nigeria.