Eli Global Microfinance Association Email & Phone Number

Microfinance can be defined as a banking service dispensed to low-income individuals or groups as well as unemployed people who generally do not have access to financial services. It also refers to the credit or loans that are provided to the small and micro enterprises for the growth and expansion of their business by scaling up their operations at the same time.Many microfinance institutions also provide additional services such as savings accounts, chequing accounts, and even micro-insurance services., and business and financial education. This promotes financial inclusion in the economy and also helps in economic and social growth in the country.Microfinance for the PoorMicrofinance mostly targets the informal sector. There has been precedent that shows that microfinance has helped the financially poor to reduce their susceptibility to external shocks, improved income, and build feasible businesses. It also has been a potent instrument in enabling the economically weaker sections, especially women, to be self-sufficient, and become economic agents of change.This income generated from businesses help expand business activities, contribute to household income expansion, and also aid in food security, education of the children, healthcare, etc.Women have always been concealed from the public spaces, and interactions with such formal institutions may aid in building self-confidence among them and also a sense of empowerment.Principles of Microfinance Institutions1. To eradicate poverty by providing diverse financial services, and not just loans, needed by the poor.2. Its focus is to build a financial system for the economically weaker sections.3. Building of permanent local financial institutions that focuses on creating more domestic deposits, recycling them as loans, and also providing various other financial services.4. The government’s duty is to enable financial services, not providing them.Benefits of MicrofinanceThere are several benefits of microfinance.Providing immediate fundsThe microfinance setup helps to provide an additional level of resilient behavior in the economy at large. It helps the households to work efficiently and effectively at large. It also helps these households to alleviate poverty. It allows the businessmen to run their companies and upscale their businesses at the same time. It provides the opportunity for the firm to get immediate resources for keeping their business on. It also helps in capital accumulation that leads to more access to funds when needed.Access to credit.We empower our Core India

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  S.N College Of Arts And Commerce

  Banking, Corporate, Finance, And Securities Law