Microfinance

Filed Under » ,
Dictionary Says

Definition of 'Microfinance'

A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance.
Investopedia Says

Investopedia explains 'Microfinance'

Microfinancing is not a new concept. Small microcredit operations have existed since the mid 1700s. Although most modern microfinance institutions operate in developing countries, the rate of payment default for loans is surprisingly low - more than 90% of loans are repaid. 

Like conventional banking operations, microfinance institutions must charge their lenders interests on loans. While these interest rates are generally lower than those offered by normal banks, some opponents of this concept condemn microfinance operations for making profits off of the poor.

The World Bank estimates that there are more than 500 million people who have directly or indirectly benefited from microfinance-related operations.  
Search results for

'Microfinance'

  • Microfinance: What It Is And How To Get Involved

    http://www.investopedia.com/articles/07/microfinance.asp
    Microfinance: What It Is And How To Get Involved. ... In 2007, the microfinance market
    served more than 33 million borrowers and 48 million savers. ...

  • Microfinance: Philanthropy Through Industry

    http://www.investopedia.com/articles/economics/08/microfinance.asp
    Microfinance: Philanthropy Through Industry. ... (For more, read Microfinance
    Has Major Impact.). Advertisement - Article continues below. ...

  • The Who, What And How Of Microfinance - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1110/The-Who-What-and-How-Of-Microfinance.aspx
    ... The Who, What And How Of Microfinance. Posted ... practices. (For related reading,
    also be sure to check out Microfinance Has Major Impact). ...

  • Improve Your Karma With Microlending

    http://www.investopedia.com/articles/economics/09/microlending-101.asp
    ... Percentage of Kiva loans which have been made to women entrepreneurs: 82.55%. Number
    of Kiva Field Partners (microfinance institutions Kiva partners with): 106. ...

  • Water Cooler Finance: G20 Leader Spats And China Fakes It ...

    http://financialedge.investopedia.com/financial-edge/1110/Water-Cooler-Finance-G20-Leader-Spats-And-China-Fakes-It.aspx
    ... was also a focus on introducing financial models that would help small- to
    medium-sized enterprises (SMEs) in emerging markets move up from microfinance lenders ...

  • Lending Clubs: Better Than Banks?

    http://www.investopedia.com/articles/pf/09/lending-clubs.asp
    ... (Learn more about microfinance in our article Microfinance Has Major Impact.) Bottom
    Line for Borrowers and Lenders Squeamish investors take heed when ...

  • Peer-To-Peer Lending Breaks Down Financial Borders

    http://www.investopedia.com/articles/financial-theory/08/peer-to-peer-lending.asp
    ... (For more on this, read Microfinance Has Major Impact.). Advertisement -
    Article continues below. P2P Lending Has Many Branches Like ...

  • Nobel Winners Are Economic Prizes

    http://www.investopedia.com/articles/08/nobel-prize.asp
    ... $1.5 million) and possibly some long overdue credit and attention, especially in
    some of the younger economic fields such as microfinance and behavioral finance ...

  • Alternative Ways To Invest In Debt

    http://www.investopedia.com/articles/basics/11/alternative-debt-investments.asp
    ... rate of default. (For more on these types of products, read Microfinance:
    What It Is And How To Get Involved.). Factoring Factors ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links