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Understanding Microfinance Services

Microfinance provides financial services like loans, savings, and insurance to small businesses and entrepreneurs who lack access to traditional banking. It does this through either individual-based lending or group-based models where entrepreneurs apply for loans together. Supporters see microfinance as a way to give the poor and near-poor tools to lift themselves out of poverty by starting businesses, while others view it as supporting small businesses and economic growth overall.

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Inderjeet Singh Toor
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11 views1 page

Understanding Microfinance Services

Microfinance provides financial services like loans, savings, and insurance to small businesses and entrepreneurs who lack access to traditional banking. It does this through either individual-based lending or group-based models where entrepreneurs apply for loans together. Supporters see microfinance as a way to give the poor and near-poor tools to lift themselves out of poverty by starting businesses, while others view it as supporting small businesses and economic growth overall.

Uploaded by

Inderjeet Singh Toor
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Micro finance

Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and
related services. The two main mechanisms for the delivery of financial services to such clients are: (1) relationshipbased banking for individual entrepreneurs and small businesses; and (2) group-based models, where several
entrepreneurs come together to apply for loans and other services as a group.
For some, microfinance is a movement whose object is "a world in which as many poor and near-poor households as
possible have permanent access to an appropriate range of high quality financial services, including not just credit but
also savings, insurance, and fund transfers."[1] Many of those who promote microfinance generally believe that such
access will help poor people out of poverty,. For others, microfinance is a way to promote economic development,
employment and growth through the support of micro-entrepreneurs and small businesses.
Governors of rbi
R rangarajan
Deputy gov.
Urijit patel
Hr khan
Ss mudra
R gandhi

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