The document provides an overview of microfinance concepts, principles, characteristics, and best practices. It discusses that microfinance aims to provide financial access to low-income groups through loans, savings, and other services. Key principles include understanding the market, streamlined operations, repayment incentives, and sustainable interest rates. Characteristics are collateral-free and small loans with flexible terms. Best practices are effective management systems, financial sustainability, and involving clients.
Presentation includes Introduction to Microfinance Industry, Business Process, Strategies, Key Challenges, Future Outlook and Special Issues like Urban Microfinance & Rating of Microfinance Institutions
This article analyzes the impact of Microfinance in the different parts of the world including India, Malaysia, Nepal, Bangladesh, Maldives, Africa and others.
Presentation includes Introduction to Microfinance Industry, Business Process, Strategies, Key Challenges, Future Outlook and Special Issues like Urban Microfinance & Rating of Microfinance Institutions
This article analyzes the impact of Microfinance in the different parts of the world including India, Malaysia, Nepal, Bangladesh, Maldives, Africa and others.
Microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services.
This is a simple presentation about microfinance and important of it in developing country. I briefly described about service and impact of it.
I prepared it to present in university.
University of Economics in Katowice, Poland.
Suman Bhattarai (Nepal)
A lecture presented by Chair Alexander Raquipo, SACDECO during the 2017 Cooperative Month Celebration at NSCC Plaza, Caoayan, Ilocos Sur, Oct. 30, 2017
Entrepreneurial power and Socio-Economic policies shown by Mr. Yunus. His step to change the cycle of poverty is extremely successful. A micro-created system changed the way lending for poor.
Micro finance for agriculture, A report on how Microfinance and Agriculture are to go hand in hand in the coming years, Showing a good business opportunity.
Microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services.
This is a simple presentation about microfinance and important of it in developing country. I briefly described about service and impact of it.
I prepared it to present in university.
University of Economics in Katowice, Poland.
Suman Bhattarai (Nepal)
A lecture presented by Chair Alexander Raquipo, SACDECO during the 2017 Cooperative Month Celebration at NSCC Plaza, Caoayan, Ilocos Sur, Oct. 30, 2017
Entrepreneurial power and Socio-Economic policies shown by Mr. Yunus. His step to change the cycle of poverty is extremely successful. A micro-created system changed the way lending for poor.
Micro finance for agriculture, A report on how Microfinance and Agriculture are to go hand in hand in the coming years, Showing a good business opportunity.
Effectiveness of micro finance on living standards and empowerment1venkatesh yadav
Effectiveness of micro finance on living standards and empowerment,Micro- Finance - Meaning,Characteristics of Micro-finance,Microfinance Products and Services,Statement of the Problem
a Presentation by Department of Trade and Industry (DTI) at the BSP Regional Financial Literacy Campaign for OFWs in Davao City, Philippines on July 27, 2006
A development finance institution (DFI) is an alternative financial institution which includes microfinance institutions, community development financial institution and revolving loan funds. These institutions provide a crucial role in providing credit in the form of higher risk loans, equity positions and risk guarantee instruments to private sector investments in developing countries.
Mr. Napoleon Micu from the National Credit Council- Department of Finance speaks about the national policy framework of microfinance in the Philippines (Jan 29, PACAP Community Development Forum - Microfinance Amidst the Global Financial Crisis)
Joan Trant,
Executive Director, International Association of Microfinance Investors.
Joan Trant's presentation from the 2009 Take Action! Impact Investing Conference in San Francisco.
This presentation discusses the causes of Andhra Pradesh crisis, how it all started and the possible after-effects. It also examines how the Indian MFIs and the government should respond post this crisis. The presentation concludes with reactions from the clients.
This power pint basically deals with the Overall Scenario of Ghandruk in regard to its Community Forest/ User group, Level of Remittance Inflow, and Impact of migration in Ghandruk.
This powerpoint Deals with basic Concepts of optical Fibers.It was prepared to assist students to get knowledge about Optical fibers and their working principle as well.
Read it ,, share it ,, Cheers...(C) Regmi Milan
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
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how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
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Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
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@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
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The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
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However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
1. An Overview,
Fundamental
Concepts, Principles
and Characteristics,
best practices of
Microfinance
Tejhari Ghimire
2. Resource contents
• An Overview of Microfinance Sector
• Fundamental Concept of
Microfinance
• Key Principles of microfinance
• Characteristics of Microfinance
• Best practices of microfinance
09/16/12
3. Overview….Country
Scenario
• More than 31% of the Nepal's
population lives in extreme poverty.
• Informal financial system remains
dominant
• The sector has experienced growth of
microfinance institutions (MFIs) and
significant progress in terms of clientele,
outreach, savings and credit
management.
• Microfinance Development Banks (22)
are providing microfinance services to
8,46,517 rural poor women across 57
districts through self-managed centers
and groups[1];
[1] Source: NRB, Mid-July, 2011
09/16/12
4. Overview….Country
Scenario
• 10,558 Savings and Credit Cooperatives and Credit
Unions provide services to 14,06,021 clients (female
651,512 and male 754,509) in 75 districts[1] ( this
includes urban saving and credit cooperatives that may
not represent microfinance services);
• Small Farmers Cooperative Limiteds (SFCLs: 243) are
providing financial services to 1,69,686 clients-SKBBL,
Mid-June, 2011
• 38 Financial Intermediary NGOs are providing financial
services to a further 454,026 predominately poor people[2]
.
• This shows that 25,95, 046 of the rural population have
access to microfinance services in Nepal, which
contributes 10.25 % of the total population and 33.05 %
of those is living below the poverty line. This is the 20%
reduction in total clients of saving and credit clients. It is
assumed that 20% urban population do not represent
MF clients that was also included in the total clients of
saving and credit coops.
[1] Department of Cooperative, 2011
09/16/12
[2] Compiled by CMF, 2011
5. Overview….Country
Scenario
• A total of 2,048,742 of the rural population
have access to microfinance services in
Nepal, which contributes 8.09% of the
total population[1] and 26.1% of those is
living below the poverty line[2],
• Of which 1,233,058 are women,
representing 9.73% of all Nepalese
women[3]. Data shows that the majority of
microfinance service recipients are
women
• Nevertheless, the women led MFIs are
approximately 2545 saving & credit
cooperatives.
• [1] Total population about 25,296,537 as of 2005 Projection ( Informal Sector Research
and Study Center: 2004)
• [2] 31% of total population ( NLSS:2003/04)
• [3]( NIDI, CMF: 2006)
09/16/12
6. Fundamental concepts
• Meaning of Microfinance
• Myth and Facts of Microfinance
• Why microfinance
• Goal of microfinance
09/16/12
8. Definition
• Microfinance is the provision of
financial access to low-income
people or solidarity groups
including consumers and the small
entrepreneurs , who traditionally
lack access to banking and related
services.
9. Meaning of Microfinance
• "Microfinance is the supply of loans,
savings, and other basic financial
services to the poor." (CGAP).
• A microfinance institution (MFI) is
defined as an organization that provides
microfinance services, ranging from
small non-profit organizations to large
commercial banks.
• CGAP broadly defines MFI as any
organization—credit union, downscaled
commercial bank, financial NGO, or
credit cooperative that provides financial
services for the poor.
09/16/12
10. Myth and Facts
• Poor people do not repay
loan
– Myth or Fact
• Poor people can not pay the
interest rates necessary to
cover the cost of delivering
the services
– Myth or Fact
09/16/12
11. Myth and Facts
• MFIs cannot access commercial
sources of funding
– Myth or Fact
09/16/12
12. Myth and Facts
• MFIs cannot reach the very poorest
of the poor only through credit
– Myth or Fact
• Financial sustainability is necessary
for an MFI to reach large number of
people
– Myth or Fact
09/16/12
13. Myth and Facts
• MFIs only extend services to the
very poor
– Myth or Fact
• Microfinance alone does not
alleviate poverty
– Myth or Fact
09/16/12
14. Myth and Facts
• The Goal of microfinance is
institutional sustainability
– Myth or Fact
• Many microfinance operation will
not become sustainable
– Myth or Fact
09/16/12
15. Myth and Facts
• A solid understanding of the facts
about microfinance is critical to
making good investment decision
09/16/12
16. Why Microfinance
• Development of micro-enterprise
– Microenterprise creates job
• Supply of goods and services to
low- income population is increased
• Increase the productive use of
capital
09/16/12
17. Goal of Microfinance
• Viability
– Sustained long – Retained
term viability earnings
through profit,
– Commercial
not donor
capital deposits
funding
• Outreach
– Reach more
people with
quality services
09/16/12
18. Goal of ….Qualities of
outreach
• Depth of • Quality of
outreach services
– MFIs with deep – Liquidity
outreach reach
– Convenience
very poor or hard
to reach clients – Availability
– Flexibility of
purposes
– Freedom to borrow
• Scale or save
– The number of
people with
• Indicators of
access to MFI quality services
services – Demand
– Large scale
outreach is
necessary to
reach the majority
of potential clients
09/16/12
19. Viability
Financial Institutiona
l
The basic Organizatio
cost of ns that are
operation well
are covered managed
by MFI and staffed
revenue, for long-
not term
subsidies success
Both financial and
institutional viability are
necessary to support the
goal of extending services
to the large number of
people over time
09/16/12
20. Benefits of financial
viability
• Services can be maintained in the
future without being subject to
unpredictable fluctuations in donor
funding
• Access to commercial sources of
funding
09/16/12
21. Self-sufficiency
Operational Self Financial Self
Sufficiency Sufficiency
Depreciation, loan loss
All expenses
provision expenses and
cash operating covered by income
expenses from operations
•Loan loss reserves •Loan loss reserves
•Salaries •Salaries
•Rent •Rent
•Depreciation of •Depreciation of Fixed
Fixed Assets Assets
•Cash cost of funds •Cash cost of funds
•Inflation on equity
•Value of subsidies
•Cost of capitalization
09/16/12
22. Level of Financial Viability
• Level I: Characteristics
– MFIs that have not achieved
operational self sufficiency
– They rely on outside donation for
continued operation
– Revenues fall short of operating
expenses
– Inflation will erode the loan fund
– Poor performers are subject to erosion
of loan fund through delinquency and
default
– Many have high operating costs, are
reluctant to charge sustainable interest
rates, and have high delinquency and
default rates, especially older
organization
• It is estimated that 90% MFIs operate at
level I
09/16/12
23. Level of Financial Viability
• Level II: Characteristics
– MFIs that are operationally, but
not financially, self-reliant
– They apply proven principles,
are generally efficient, have
higher client to staff ratios, an
increasing scale of operation,
and good control of delinquency
and default
– Interest and fee income cover
operating expenses, but
inflation can erode equity
– Funds are borrowed on terms
near, but still below, market
rates
• Level II organizations can vary
widely from those that rely on soft
money.
09/16/12
24. Level of Financial Viability
• Level III: Characteristics
– MFIs that are financially self-
sufficient
– Operation is fully financed from
retained earnings, client savings,
or commercial funds
– Interest rates and fees cover the
full cost of service delivery and
return on savings
– Interest rates and fees cover the
real cost of funds
– MFIs can increase their equity
base through profits and attract
outside equity participation
• So far only a few MFIs have reached
at Level III, but many poised to do
so.
09/16/12
25. Institutional Viability
• Capacity
• Governance
• Types
– Specialized financial institutions
– Specialized services within commercial
financial institutions
– Non-governmental organization (NGOs)
– Credit unions or other member owned
institutions
09/16/12
26. Principles of Microfinance
• Consultative Group for Assistance
to the Poorest (CGAP)- 2004
(Principles)
• Key operating principles of
microfinance
• International Credit Union
Operating Principles-1984
09/16/12
27. Consultative Group for Assistance
to the Poorest (CGAP)- 2004
• Poor people need a variety of financial
services, not just loans.
• Microfinance is a powerful tool to fight
poverty.
• Microfinance means building financial
systems that serve the poor.
• Microfinance can pay for itself, and must
do so if it is to reach very large numbers
of poor people.
• Microfinance is about building
permanent local financial institutions.
09/16/12
28. Consultative Group for
Assistance to the Poorest
(CGAP)- 2004
• Micro-credit is not always the
answer.
• Interest rate ceilings hurt poor
people by making it harder for
them to get credit.
• The role of government is to
enable financial services, not to
provide them directly.
• Donor funds should complement
private capital, not compete with it.
• The key bottleneck is the shortage
of strong institutions and
managers.
• Microfinance works best when it
measures—and discloses—its
performance.
09/16/12
29. Key operating principles of
microfinance
• Understanding the Market
– A successful MFI understands
its market and designs products
that serve its clients
• Streamlined Operations
– Streamlined operations help
MFIs make efficient use of
resources and keep cost low
• Informal Sector Practices
– This practices help an MFI
manage risk, motivate
repayment, and lower
administrative costs.
09/16/12
30. Key operating principles of
microfinance
• Repayment Incentives
– The ability to get another loan
when it is needed is a powerful
incentive for the clients to repay
current loan.
• Saving Services
– Saving services should be
liquid, secure, convenient, offer
competitive returns, and not to
be limited to borrowers.
• Viability and Growth
– MFI staff should be focused on
achieving efficiency, financial
productivity, and financial
viability.
09/16/12
31. Key operating principles of
microfinance
• No Delinquency tolerated
– Successful MFIs do not tolerate
delinquency
• Sustainable Interest Rates
– Interest must be set high
enough to cover all costs of
delivering services
• Linkage to Financial Market
– Leveraging resources from
commercial markets is essential
to achieving significant outreach
09/16/12
32. International Credit Union
Operating Principles-1984
• Democratic Structure
– Open and volunteer
membership
– Democratic control
– Non-discrimination
• Service to Members
– Service to members
– Distribution to members
– Building financial stability
09/16/12
33. International Credit Union
Operating Principles-1984
• Social Goals
– Ongoing education
– Cooperation among
cooperatives
– Social Responsibility
09/16/12
34. Characteristics of
Microfinance
• Mostly it is collateral free
• MFIs go to clients rather than
clients go to MFIs
• Simplified savings and loan
procedures
• Small sizes of loans and
savings
• Repeat Loans
• Loan size increases in the
repeated loans or subsequent
cycles
09/16/12
35. Characteristics of
Microfinance
• Interest rate is usually in
between money lenders and
formal banks
• Free use of loans (no
restrictions on specified
purpose)
• Repayment considers incomes
from business as well as other
sources
• Loan and savings products
within manageable numbers
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37. Best practices of MFIs
• Build effective
Management Information
System (MIS)
• Reach large number of
clients (Vision of growth)
• Promote savings services,
diversify savings products
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38. Best practices of MFIs
• Offer services that fit the
clients’ needs, diversify
loan products
• Simplify loan products to
reduce operational costs
• Motivate clients to repay
loans, focus on high
repayments
09/16/12
39. Best practices of MFIs
• Attain financial
sustainability by charging
sufficient (above market)
interest rates and fees
• Involve clients when
designing services
• Promote effective
governance, characterized
by democratic and
transparent decision-
making
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40. Best practices of MFIs
• Target clients properly
• Focus on financial
services only
• Develop institutional
linkages.
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41. Lessons learned from
Women managed Savings
and Credit Cooperative
• Lesson -1 Women managed
saving and credit cooperatives
are the best microfinance
institutions that can exist even in
an insurgency situations
• Lesson -2 Adaptive mix of
training and technical assistance
can ensure capacity building
even in case of uneducated/rural
women owned institutions:
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42. Lessons learned from
Women managed Savings
and Credit Cooperatives
• Lesson-3 Participatory
monitoring helps MFIs to
develop need based products
and services
• Lesson-4 Enhanced
capacity of MFIs creates
demand for enterprise
development services and
entrepreneurs
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43. Lessons learned from
Women managed Savings
and Credit Cooperatives
• Lesson-5 Installment
repayment system helped to
reduce delinquency rate
• Lesson-6 Healthy
competition among MFIs
encourages self-regulation in
the market
• Lesson-7 Rural and only literate
women managed saving and
credit cooperatives are able to
attain OSS 108% and FSS 92%.
09/16/12
Editor's Notes
Tejhari Ghimire
Tejhari Ghimire
A. Small saving helps to build assets for the poor B. Rented in money from services provider with collateral or with out collateral by the poor C. Transfer of money , skills and culture D. Protection from risks Microfinance works in solidarity group and group provides guarantee to the service providers.