basic things of micro finance

1. Micro Finance

2. Definition for micro finance
Micro finance mean is giving financial and non financial facilities to
economically active low income people.

3. Economic pyramid
Rich people
SME
Economically active poor people
Beggars

4. Economically active poor people
Economically active poor people have positive attitudes and entrepreneurship.
They have ability to financial discipline and can create capital through savings.
People of the society
Behavioral poor
Economically poor Technological poor

5. Products
• Micro finance provide nonfinancial and financial services to
economically active poor (low income) people.
Micro finance products
Non financial service financial service
Micro savings
Micro credit
Micro insurance
Micro leasing
Micro factoring
micro payment
Provide knowledge
Social mobilization

6. Social mobilization
Under this, micro finance officers have to give knowledge about how to manage their wealth in proper way.
According to that, MF officers should block leakages of that family wealth. Then they can give advices about
how to utilize and use micro finance.
Micro finance officers have responsibility to increase the capacity of savings of economically active low level
income people.
Micro factoring
Carpenter
Produce furniture Sell to Richard pirice
company
LOLC leasing company
1
2
3
4

7. When carpenter produce furniture and sell to Richard pirice company. Then Richard pirice company give
A good received notice to carpenter behalf of money. So according to this process carpenter cannot take money
When sell furniture. Therefore, carpenter give that good received notice to factoring company and that company give
75% of that amount and balance give reducing company charges after giving money by Richard pirice company.
Micro payments
PayPal bank
Customer Merchant/ seller
money
scrip
goods
scrip
License
Money