financial services for poor

1. Financial services for
the poor
chapter 11
Presentation
Aashique Ali 2k17/sw/2
Aslam khan 2k17/sw/20
Asad Ali 2k17/sw/96
Irfan 2K17/SW/100

2. INTRODUTION
 Microfinance is defined as any activity
that includes the provision of a financial
services such as credit, savings, and
insurance to low income individuals
which fall just above the nationality
defined poverty line, and poor
individuals which fall bellow the poverty
line, with the goal of creating social
value .the creation of social value includes
poverty alleviation and the broader impact
of improving livelihood opportunities
through the provision of capital of
microenterprise, and insurance and saving
for risk mitigation and consumption
smoothing.

3. Microfinance
• Microfinance also called microcredit . Is type of banking services
provided to unemployed or low income individuals or group who
otherwise would have no other access to financial services , while
institutions participating in the areas of microfinance most often
provide lending.
• Microfinance typically –targets microenterprise , which are
characterized by little to no capital invested in the businesses , and a
maximum of two or three.

4. Continuous….
• Micro loans can range from as small as 100 to large as 25000 dollar .
• Many banks offer additional services such as checking and savings
accounts as well as micro insurance .
• Microfinance numerous services for clients ,microcredit and
microenterprise the term used to refer to the loan or credit .
• which clients will pay backs with interest to the MFI.

5. CONCEPT OF
MICROFINANCE
• Microfinance is not a new concept ,small operation have exited since
the 18th century .
• The first occurrence of micro lending is attributed to the Irish loan
system introduced by jonathan swift ,which sought to improve for
improverished irish citizen.

6. Grameen bank
• The most well-known microfinance model is the Grameen bank in
Bangladesh.
• Whose solidarity group programs have loaned more than USD 17 billion
for self employment purposes with repayments 100 precent .2015
• Garmeen bank had almost 129 million USD in capital , 22,000
employees.
• 8.5 million borrowers and 2500 branches .
• Accroding to lamia karim research , there are over 21 million women
in country of 140 million benig served by MFIs in Bangladesh 2011

7. Garmeen bank
objectives;
• Extend banking facilities to poor men and women.
• Eliminate the explotion of the poor by money lenders.
• Create opportunities for self employment for the vast multitude of
unemployment people in rural Bangladesh.
• Bring the disadvantaged, mostly the women from the poorest
household , within the fold of an organizational format which they can
understand and mange by themselves
•

8. Microfinance impacts• Mohammed Anisur Rehman [2007]
has exmined that about microfinance and to investigate the impact of
microfinance on the poor people of the society with the main focus on
Bangladesh .
• SusyCheston [2002]
Has examined that microfinance has the potential to have a powerful
impact on women empowerment .
• Linda MAYOUX [2006]
Has examined that microfinance programs not only give women and men
access to savings and credit ,but reach million people of worldwide
bringing them together regularly in organized groups.

9. Microfinance and businesses traning in
Ghana
• Box11.4
• Lumana is an MFI in Ghana with small communal bank groups. Once
they are approved loan ,but before they receive any money ,these
groups attend a three day business training in local languages .
• This training includes basic accounting appropriate even for illiterate
clients
• As well as instruction in personal savings
• Goal setting such as saving for children’s education
• Runing business and get more profit .