Microfinance involves providing small amounts of credit and other financial services to low-income individuals. It aims to help the poor generate self-employment and raise their income levels through microcredit loans that are repaid in small installments. Microsavings allows the poor to save small amounts in institutions. There are various types of microcredit and microsavings products that target the needs of low-income individuals. However, microfinance services still need to address challenges of lack of awareness, infrastructure issues, and doubts among potential users. Expanding proximity and improving security and staff attitudes can help promote greater access and use of microfinance.

1. Submitted to: Ms.
Sandeep Kaur
(deptt. Of Commerce)
Submitted by: Monica Bagga
M.com 3rd sem
3101

6. Micro Finance
Micro Credit Micro Savings

7. Micro credit-is a provision of credit
and other financial services and products
of very small amount to the poor in rural,
semi urban & areas for enabling them to
raise their income levels and improving
standards
Micro savings- savings made by
low income or poor people made
their savings in particular
institutions.

8. Promotes credit as
human being
To help poor people
Generate self
employment
Building social capital
Loans are repaid in small
installments
Challenge of traditional
banks

9. Types of micro savings
products
• Involuntary deposits
• Voluntary deposits
• Contractual savings
• Time deposits
Types of Micro Credit products
1) Income generation loan (IGL)
2) Mid Term loan (MTL)
3) Emergency loan
4) Individual loan

10. Low rate of interest
on loan
Not a charity
Size of loan and
savings

25. Not available the micro
services at vast level
Unawareness among
people
Infrastructural facilities
Doubts in mind of people

26. Improving proximity
Less costly services to poor
people
Improving the security
Organizational staff’s
attitude ,culture is user
friendly