PROs and CONs of Microfinance: An Overview

Knowledge Center


Next Topic

Microfinance > Forum > PROs and CONs of Microfinance: An Overview

🔥NEW PROs and CONs of Microfinance: An Overview
Elwin Poortman, Analyst, Netherlands, Member
Microcredit has been seen as the magic bullet that can help the poor to escape poverty, however in recent years the flaws of microcredit schemes have become more clear and have shown that not everything about lending to poor is beneficial. The authors of Poor Economics elaborated on these pros & cons, and the major ones are explained below. Benefits of Microfinance:
  1. Opportunity to invest and gain access to markets & industries that were inaccessible before, due to a financial threshold.
  2. Empowerment, especially for females, since they are less financially and therefore socially dependent.
  3. often takes place in groups so that each individual is responsible for the entire groupís investing behavior, which is called joint liability. This increases social capital such as sharing knowhow, partnerships and trust building.
  4. Changing financial markets: The moneylenders that were accessible prior to the rise of Microfinance, were known to have o (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in

  Another Disadvantage of Microfinance
Karl West, Accountant, United States, Member

  Good Support is Needed for Microfinance
jorge anibal hoyos hoyos, Manager, Colombia, Member

  Support of a Regional Development Scheme
Niko, Consultant, Slovenia, Member

Special Interest Group Leader

Are you an expert in this field? Sign up for free

PROs and CONs of Microfinance: An Overview
Problems with Microfinance: Beneficiaries Lack Financial Expertise
Microfinance Types: Group and Individual Lending
Best Practices
🥇What is Financial Inclusion?
🥈Accreditation in Microfinance / Financial Inclusion
🥉Disadvantages of Microfinance / Microloans. Risks
What is Poverty Reduction in Development Economics?
History of Microfinance
Microfinance Counseling is Necessary
Middle Class is Key for Improving Quality of Life
Micro Financing Helps
Using Post Offices Towards Microfinancing
Micro Finance is for Business People
Recent Microfinance Trends
Micro Finance for Persons with Disabilities
Is Microfinance a Success?
Microfinance & Microcredit Need Kind-hearted People
Microfinance Needs Trust
During its Evolutionary Path, Microfinance is Getting More Expensive...
Microfinance Impact on Rural Development
Microfinance for Housing (MFH)
Microfinance Research and Intelligence
Non-interest Banking
Taxation of Microfinance Institutions
Influence of Economic Crisis on Microfinance
Management and Business Coaches Needed in Microfinance
Microfinance Challenge: Solvency of the Borrowers
Exclusion of Conventional Commercial Banks from Establishing Micro-finance Banks
What is the Best Way to Manage Microfinance in Sudan?

Knowledge Center


Next Topic

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.5 - Last updated: 4-8-2020. All names ô of their owners.