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MFI’s: A Critical Partner in Disaster Mitigation and Relief
Natural disasters are indiscriminate in their impact, but for poor communities – many of which are home to microfinance clients – the effects can be devastating.
BRAC - Linking Food and Training with Microfinance
BRAC, the world’s largest NGO with a large microfinance program serving more than five million Bangladeshi families, is another example demonstrating that microfinance can and should serve the world’s poorest.
Inhibitors to Success: Education
The third critical factor that prevents some borrowers from sustaining a successful business is lack of education. Most borrowers of microfinance are incurring debt and operating a business for the first time.
Paving a New Path
Mariana's story - East Timor

Microfinance and the MDGs
Microfinance, and the impact it produces, goes beyond just business loans. Poor people use financial services not only for business investment in their microenterprises but also for health and education, managing household emergencies, and meeting the wide variety of other cash needs that they encounter.
When is microfinance NOT an appropiate tool? FAQ
Microfinance increasingly refers to a host of financial services—savings, loans, insurance, remittances from abroad, and other products. It is hard to imagine that there would be any family in the world today for which some type of formal financial service couldn't be designed and made useful. But the fact of the matter is, that in most people's mind, "microfinance" still refers to microcredit.

Who are the clients of microfinance? FAQ
The typical microfinance clients are low-income persons that do not have access to formal financial institutions. Microfinance clients are typically self-employed, often household-based entrepreneurs. In rural areas, they are usually small farmers and others who are engaged in small income-generating activities such as food processing and petty trade. In urban areas, microfinance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc. Microfinance clients are poor and vulnerable non-poor who have a relatively stable source of income.
Who are the clients of microfinance? FAQ
The typical microfinance clients are low-income persons that do not have access to formal financial institutions. Microfinance clients are typically self-employed, often household-based entrepreneurs. In rural areas, they are usually small farmers and others who are engaged in small income-generating activities such as food processing and petty trade. In urban areas, microfinance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc. Microfinance clients are poor and vulnerable non-poor who have a relatively stable source of income.
Who are the clients of microfinance? FAQ
The typical microfinance clients are low-income persons that do not have access to formal financial institutions. Microfinance clients are typically self-employed, often household-based entrepreneurs. In rural areas, they are usually small farmers and others who are engaged in small income-generating activities such as food processing and petty trade. In urban areas, microfinance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc. Microfinance clients are poor and vulnerable non-poor who have a relatively stable source of income.
Who are the clients of microfinance? FAQ
The typical microfinance clients are low-income persons that do not have access to formal financial institutions. Microfinance clients are typically self-employed, often household-based entrepreneurs. In rural areas, they are usually small farmers and others who are engaged in small income-generating activities such as food processing and petty trade. In urban areas, microfinance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc. Microfinance clients are poor and vulnerable non-poor who have a relatively stable source of income.

Other microfinance clients Related Articles

3.2 The Roles of Donors and NGOs: Microfinance in Africa Experience and Lessons from Selected African Countries
Donors and NGOs have generally provided support through two main channels: domestic NGOs or donor-managed microfinance projects, and microfinance institutions that function more or less like leasing companies (receiving wholesale external resources and lending to clients).
Who are the clients of microfinance? FAQ
The typical microfinance clients are low-income persons that do not have access to formal financial institutions. Microfinance clients are typically self-employed, often household-based entrepreneurs. In rural areas, they are usually small farmers and others who are engaged in small income-generating activities such as food processing and petty trade. In urban areas, microfinance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc. Microfinance clients are poor and vulnerable non-poor who have a relatively stable source of income.
Can microfinance be profitable? FAQ
Yes it can. Data from the MicroBanking Bulletin reports that 63 of the world's top MFIs had an average rate of return, after adjusting for inflation and after taking out subsidies programs might have received, of about 2.5% of total assets. This compares favorably with returns in the commercial banking sector and gives credence to the hope of many that microfinance can be sufficiently attractive to mainstream into the retail banking sector. Many feel that once microfinance becomes mainstreamed, massive growth in the numbers of clients can be achieved.
Realising the potential of microfinance
Microfinance is a key strategy in reaching the Millennium Development Goals (MDGs) and in building global financial systems that meet needs of most poor people. Although microfinance has demonstrated the potential to reduce poverty, its impacts have varied. Perhaps as a result of these inconsistencies, few donors have prioritised microfinance in their strategies to achieve the MDGs.
Managing Foreign Exchange Risk: The Search for an Innovation to Lower Costs to Poor People
There is currently much debate over whether commercial investments in microfinance pass foreign exchange risk exposure to poor clients through high interest rates - i.e., whether foreign investment in microfinance is expensive for poor people. But what makes foreign currency exposure such a problem?
Redefining Microfinance as a Strategy to Achieve the MDGs: International Year of Microcredit Report Advocates Shift from Poverty Alleviation to Wealth Creation
With microfinance gaining attention for its vital role in eradicating poverty, the International Year of Microcredit recently released a report, "Microfinance and the Millennium Development Goals (MDGs): A Reader's Guide to the Millennium Project and Other UN Documents", to provide further background and support for microfinance initiatives.
Inhibitors to Success
At its core, microfinance is not terribly different from mainstream consumer finance. From accessing funding to managing the disbursement and collection of funds, microfinance operates like any consumer finance business. But because microfinance serves a very different client segment – the world’s poor – we cannot ignore the different set of challenges these clients face and the implications these challenges have on the organizations serving them.
Pro Mujer - Providing Clients with Essential Health Care
Pro Mujer, an international microfinance network composed of partner MFIs in several Latin American countries, is a believer and a practitioner of “Microfinance Plus”— a term that has come to capture the concept of offering integrated services to its clients.
Fonkoze - Educating Individuals to Become Self Sustaining
Fonkoze, Haiti’s largest microfinance institution, is another good example of integrating microfinance with other services such as medical treatment, remittances, empowerment, insurance against risk and natural disasters, health insurance, and in particular, education to help improve clients’ situations and contribute to the overall economy.
Citi Foundation Creates $11.2m Program with SEEP Network to Strengthen Trade Associations
The Citi Foundation will work with the Small Enterprise Education and Promotion Network (SEEP) to create the 3-year USD 11.2 million Citi Network Strengthening Program. The program will include 12 major microfinance trade associations and their members. The program’s goal will be to improve the integration of microfinance into the mainstream economies of developing countries. This includes improving participating trade associations’ ability to develop products and services which meet their clients’ needs. In addition, the program seeks to “enhance the industry’s infrastructure, introduce higher standards of management and governance, and promote the vital role of microfinance in providing the poor with access to financial services.”
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