Microfinance / Microcredit
Small-scale financial services for low-income individuals or micro-enterprises.
Detailed Description
Microfinance / Microcredit
What is the main purpose of microfinance?
The main purpose of microfinance is to empower low-income individuals by providing them with financial resources to improve their economic situation.
Who is credited with pioneering the microcredit model?
Dr. Muhammad Yunus is credited with pioneering the microcredit model through his work in Bangladesh.
What are some key features of microfinance?
Key features of microfinance include small loan amounts, flexible repayment terms, group lending, minimal documentation, and financial education.
What challenges does microfinance face?
Microfinance faces challenges such as over-indebtedness, high interest rates, lack of regulation, variable success rates, and limited financial literacy.
How does microfinance contribute to poverty alleviation?
Microfinance contributes to poverty alleviation by providing access to financial resources that enable individuals to improve living conditions, invest in education, and access healthcare.