StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Microfinance - Essay Example

Comments (0) Cite this document
Summary
There is much debate around it as the reasons of poverty can be very different. The reasons can have different origin: they can spring from personal characteristics, inequality or government’s actions. As there are many causes of the given…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
Microfinance
Read TextPreview

Extract of sample "Microfinance"

Download file to see previous pages Thus, it is essential to consider every region separately in order to come to the right conclusion. In the given paper we will analyze the effect of microfinance in India, Hyderabad.
Microfinance is widely used in India and even had some positive results at the very beginning: “India’s microfinance sector was once touted as a saviour of the poor and a good bet for investors. The high point for the industry came when SKS—then India’s biggest microfinance company with a $1.2 billion loan book, a third of it in the southern state of Andhra Pradesh—went public in July 2010. The $350m offering was more than 13 times oversubscribed.” (“Road to redemption”) However, according to the same source, the situation started worsening at once. It is essential to analyze the reasons of worsening and make recommendations.
According to the available statistics, the credit offered by Spandana and other Microfinance institutions working in the region of Hyderabad, was used by 37% of households. The percent is not very high if to take into account the purposes of taking loan (Chowdhury, 2007). Institutions do not state that credits were taken for business starting purposes. However, 30% of people who took loans said that they used this money mainly for this purpose, while 22% used these funds to buy facilities for the business they already have; 30% of borrowers spent loan to buy new facilities for their households (Greater Hyderabad Municipal Corporation).
Here we can see some positive dynamics. The availability of Microfinance institutions loans changed annual percent of newly created businesses from 5.3 to 7. Competition did not bring any difficulties to the existing businesses (Greater Hyderabad Municipal Corporation)
The expenses are different and depend on the purpose of credit. Data shows that those who took a credit ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Microfinance Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Microfinance Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1614678-microfinance
(Microfinance Essay Example | Topics and Well Written Essays - 1000 Words)
Microfinance Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1614678-microfinance.
“Microfinance Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1614678-microfinance.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Microfinance

Microfinance

...?Microfinance Table of Contents Introduction 3 Definition and Brief History 3 Significance in developing economies 3 The situation in Saudi Arabia 4 Literature Review 4 Concept and importance of microfinance 4 Significance of Microfinance Institutions in Developing Economies 6 Summary 11 Research Methodology 12 Timescale for the dissertation 14 References 14 Introduction Definition and Brief History Microfinance institutions advance credit at lenient terms to encourage entrepreneurial ventures by the poorer section of the society. The history of modern microfinance institutions could be traced back to the 1970s when Bangladesh introduced financial units...
16 Pages(4000 words)Dissertation

MICROFINANCE IN DEVELOPING ECONOMIES

...?MICROFINANCE IN DEVELOPING ECONOMIES Table of Contents 4 Chapter Introduction 5 1 Definition and Brief History 5 2 Significance of microfinance in developing economies 6 1.3 The situation in Saudi Arabia 8 1.4 Research Aims 8 1.5 Research Question 9 1.6 Summary 9 Chapter 2 – Literature Review 9 2.1 Concept and importance of microfinance 10 2.4 Theories supporting microfinance units 22 2.5 Financial performance of institutions supportive of microfinance 22 2.6 Summary 25 Chapter 3 – Methodology of Research and Data Collection 25 3.1 Ratio Analysis 27 3.2 Statistical Method of Comparison 29 3.3 Data Collection Methods 30 3.4 Summary 30 Chapter 4 –...
77 Pages(19250 words)Dissertation

Microfinance Institutions

...? Microfinance s College Microfinance s (MFIs) History of microfinance s Microfinance s are relatively new developments in finance that emerged around the 1970s (Robbinson, 2001). Microfinance was an improvement of how donors and governments used to channel funds to the grassroots to help the poor in development projects. Between the 1950s and the 70s, governments and donors used to channel funds to the poor communities for development through rural credit programmes, with most of these funds being subsidised. The results were high loan default rates and high loses that made it impossible to reach the targeted rural poor households (Anyanwu, 2004). In the early 1980s, the history of microfinance institutions gained shape as more... , there...
4 Pages(1000 words)Essay

Microfinance - how government regulations affect microfinance in Brazil

...? Microfinance - How government regulations affect microfinance in Brazil Contents Contents 2 Literature Review 3 References 9 Literature Review Microfinance is a form of credit in which short term loans, especially working capital loans are provided to the entrepreneurs who have a micro or small scale business. These kinds of source of credit for the small sized industries in the developing countries have been instrumental in the reduction of the level of poverty in the countries. The main source of this kind of financing is generally the non profit organisations that provide credit at a very subsidized rate. The governments of the nations have a crucial role to play from the regulatory...
8 Pages(2000 words)Literature review

Microfinance

...Dissertation Topic and Its Rationale Microfinance has been an effective tool in efforts to combat poverty in third world countries such as Bangladesh, Indonesia and the Philippines. In the light of the rising unemployment rates and the lack of any sign of immediate economic recovery for America, a paper tackling the suitability of microfinance as the means to help low-income groups and the homeless families therein would be timely and relevant. Books have been written, accounts have been told and various awards - including the 2006 Nobel Prize - have been garnered by Prof. Muhammad Yunus, the founder of microfinance. With the establishment of his Grameen Bank, Prof. Yunus has given...
2 Pages(500 words)Essay

Microfinance

...Faisal Albwardi 01 December 2009 Non Profit Microfinance versus For Profit Lending Introduction The origins of microfinance can be traced as early as the 1800s when Lysander Spooner proffered the advantages of lending to small businesses to release people poor from the bondage of poverty. Contemporary microfinance began in the 1970s through the enterprising spirit of Mohammad Yanus of Grameen Bank in Bangladesh. (Microfinance and Micro Credit 1) Accordingly, microfinance is defined as ““banking the unbankables, bringing credit, savings and other essential financial services within the reach of millions of people who are too poor to be served by regular...
5 Pages(1250 words)Essay

Microfinance

...Article: Think Again: Microfinance February Link: www.foreignpolicy.com/articles 02/01/think_again_microfinance MicrofinanceMicrofinance is a financial service that people access in the form of loans. Their aim is to provide loans to the poor who cannot access bank services. Microfinance has managed to gain popularity around the world. It is not just for developing countries anymore. The idea of self-reliance and independence that micro finances may portray has increased trust in the microfinance institutions. The European Union benefits from the micro finances. Microfinance has enabled people to start the small business as it...
1 Pages(250 words)Essay

Microfinance

...Microfinance Microfinance can be termed as a development tool that provides affordable and continuous access tofinances for small businesses, reducing the gap between the active but financially challenged business society and financial services (Ledgerwood 3). It is a service provided by Microfinance Institutions, also known as MFIs. In this aspect, they provide more than just banking services. In my opinion, MFIs have empowered the poor by bringing financial services closer to them. However, it is also of equal significance to lay policies for efficient management and operations of the MFIs (Ledgerwood 205). To determine if the MFIs are able to make sufficient returns to meet their...
1 Pages(250 words)Essay

Domestic finance and microfinance

...Domestic finance and microfinance Why can MFIs provide banking services to people that were previously considered unbankable? Looking at the banking history, services were provided to people were able to meet the banking requirements. Poor people are lucky with the emergence of MFIs in the market as their requirements are simple as compared to those of their counterparts in the banking industry. Through their minimum savings opportunities, even the low-income earners can save in their respective groups (Ledgerwood &White, 2006). The MFIs have better lending terms as compared to those used by banks. Their requirements are simple elements as compared to those that focuses on large sums. Their role in the market makes a...
1 Pages(250 words)Assignment

Microfinance

...Microfinance Case Study The major stakeholders are the poor who cannot obtain loans from commercial banks, the microfinances, the government, and stockholders. The poor’s concern is obtaining loans for use in financing their businesses. This group is at the core of the existence of microfinances. The microfinances are concerned with empowering the poor through issuance of loans to improve the economic status of borrowers. The government gains significantly as its efforts to improve the living standards of its citizens are boosted through the efforts of microfinances. Lastly, for microfinances that go public, stockholders are another...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Microfinance for FREE!

Contact Us