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Micro Finance
Micro Finance
Microfinance is defined as any activity that includes the provision of the financial services such as credit, saving and insurance to low income individuals
Clients of Microfinance and their needs
The typical microfinance clients are low income persons that do not have access to formal financial institutions.
Micro Finance working Methodology Models:
Self Help Groups (SHGs)
Also called savings groups.SHG are groups composed of about 5 to 20 Members with
• Microcredit:
Collateral free small loan
• Microsaving:
Small savings deposit services for future
India falls under low income class according to World Bank. It is second populated country in the world and around 70% of its population lives in rural
FAQs on Microfinance
1. What is microfinance?
Microfinance is the supply of loans, savings and other financial services to the poor. The term “micro”
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