This document provides an outline and overview of a microfinance course. It introduces key concepts like how microfinance institutions (MFIs) differ from traditional banks and relief by offering small loans to poor clients and recycling funds to help many. It defines important financial terms like interest rates, expenses, and subsidies. The document also discusses debates in the industry around approaches like savings-led vs credit-led lending and whether MFIs should remain non-profits. The outline proposes future weeks will focus on local MFIs, hearing from clients and investors, and important books and websites for learning more.

1. Microfinance 101: Week TwoIntroduction to Microfinance InstitutionsRobert Gailey, Point Loma Nazarene UniversityWELCOME!

2. Outline for Tonight Introduction of Mr. Rivera – learning about his businessIntroduction of new participantsReview from last weekHow are MFIs different from other traditional financial services available to poor people?How are MFIs different from traditional relief?How are MFIs different from traditional banking? Inspiration from Sam Daley-HarrisExploring interest rates and key financial metrics for MFIsScope of impact - Microcredit Summit Report and Mix MarketA few important debates in the industryImportant books and websitesOutline of remaining weeks of classQuestion Time2

3. Introductions – Any New People? State your nameYour institutional affiliation if you have oneYour first exposure to microfinanceWhat you hope to get out of the course3

4. Review from last week4Why do people need financing?What things/events do people finance?What mechanisms exist for people to access financing?

5. How is an mfi different from: Traditional banking?5Typical financial services available to poor

6. Traditional Relief?6How Microfinance Is Different: Formal Banks vs MFIsFormal banksOffer financial services to non-poor people

7. Make large capital loans

8. Requires significant physical collateral

9. Expect clients to come to them

10. Wealthy, literate men gain greatest access

11. Clients are viewed in profit terms mostlyMicrofinance institutions (MFIs)Offer financial services to poor people excluded from banks

12. Make small capital loans

13. Leverage social guarantees instead of physical collateral

14. Bring the bank to the clients

15. Poor, illiterate women are primary targets for services

16. Focus is on building the dignity and success of clients7How Microfinance Is Different: Gifts vs LoansGrant ProgramsFunds used once

17. Projects rely on continued giving

18. Often discourages savings and business planning

19. Reaches few poor people

20. Activities are limited by donations

21. Fosters dependencyMicrofinance InstitutionsFunds recycled to help multiple times