Micro-finance provides small loans and other financial services to low-income individuals who do not have access to traditional banking services. It has helped many people start small businesses and increase their incomes. However, some argue that interest rates on micro-loans are sometimes too high and micro-finance does not address the underlying structural causes of poverty. The document discusses different models of micro-finance organizations and provides examples of how micro-loans have helped individuals and families in developing countries.

1. Micro-Finance Class Break-Down I. Micro-Finance II. Micro-Credit III. Global Agents for Change IV. Business Scenario V. In-Class Blogging

2. Why Micro-finance? According to the UNDP Human Development Report (HDR) 2005 only 9 countries (4% of the world’s population) have reduced the wealth gap between rich and poor, whilst 80% of the world’s population have recorded an increase in wealth inequality.

3. The 2.5 billion people living on less than $2 a day – 40% of the world’s population – receive only 5% of global income, while 54% of global income goes to the richest 10% of the world’s population.'

4. The HDR 2005 cites the unjust global trade regime as a primary cause in increasing global inequality.

5. According to the International Forum on Globalization, 52 of the top 100 wealthiest economic entities are corporations as opposed to countries.

6. Common Types of Micro-Finance 1) Member-Owned Organizations

7. 2) NGOs Solidarity Lending, Village Banking 3) Formal Financial Institutions

8. 4) Informal Financial Service Providers Moneyguards, savings collectors, pawnbrokers

9. How it Works Solidarity lending is based on groups borrowing collectively and encouraging one another to repay.

10. Avoids fixed cost by bundling

11. A business model is established

12. Banker comes to villages/borrowers

13. Repayment schedule is determined by business plan (usually 6-12 months)

14. Defaults are handled by village leader of eight solidarity groups

15. How it Works Part II A lender is found outside of the community

16. Loans are established through peer-to-peer lending Kiva and business profiles

17. Not charity, it's about fair access

18. 100% delivered to borrowers

19. Repayment rate