Wednesday, December 4, 2013

Notes on Microfinance

Microfinance- a form of financial services for entrepreneurs and small businesses lacking access to banking and related services

Microloan- a small loan given to individuals who might not have access to typical banking services, usually to start or expand small, self-sufficient businesses'

As of november 2013, kiva has distributed 498,939,550 loans from 1,015,823 lenders to 1,1777,248 borrowers
average loan is $410.89- so they don't get loads of money
repayment rate for all its partners is 99.01%

Microentrepreneurs receive microloans
       Villagers needing to fund a clinic, hospital, or other health care facility
       teachers trying to run a school
       students wanting further their education

Problems with microloans
    high interest rates- sometimes as high as 23%
    The cost providing banking services to those living in poverty is high.  Being the company that provides         tiny loans can be expensive.

How do microloans help
    Malaria
    banking services


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