Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their micro-enterprises.
It is a type of banking service that is provided to unemployed or low-income borrowers or groups who otherwise would have no other access to financial services
What are the benefits of joining a micro finance institution?
Microfinance is increasingly being considered as one of the most effective tools of reducing poverty. Microfinance has a significant role in bridging the gap between the formal financial institutions and the rural poor.
- It can create jobs.Microfinance is also able to let entrepreneurs in impoverished communities and developing countries create new employment opportunities for others.
- It creates the possibility of future investments.Microfinance disrupts the cycle of poverty by making more money available. When basic needs are met, families can then invest in better housing, health care, and even, eventually, small business opportunities.
- It allows people to provide for their families.Through microfinance, more households are able to expand their current opportunities so that more income accumulation may occur.
- It gives people access to credit.By extending microfinance opportunities, people have access to small amounts of credit, which can then stop poverty at a rapid pace.
- It leads to better loan repayment rates. Microfinance tends to target women borrowers, who are statistically less likely to default on their loans than men.
At Jitegemea Credit scheme, we are committed to continuously research and develop novel, affordable and value-adding products and services. Get in touch with us on 0722 207 637/0733 207 000 or email us on firstname.lastname@example.org or visit our website for more details.