A RENEW OF THE

THEORETICAL REFLECTIONMs :Heba Hassan Bashier

+249906850429

CONTAIN Concept of micro finance Micro finance services Successful micro finance Micro finance provider

DEFINITION OF 'MICROFINANCE'

A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance

SIMPLY MICRO FINANCE IS To provide financial and non-financial

services to poor people to reduce poverty wither from formal or from non formal sector

WHAT WE MEAN BY FINANCIAL AND NON FINANCIAL SERVICES ??1- FINANCIAL ARE :

loan saving Insurance Remittance

NON- FINANCIAL SERVICES ARE :

training marketing

SO MICRO FINANCE IS Microfinance” is often defined as financial services for poor and

low-income clients offered by different types of service providers. In practice, the term is often used more narrowly to refer to loans and other services from providers that identify themselves as “microfinance institutions” (MFIs). These institutions commonly tend to use new methods developed over the last 30 years to deliver very small loans to unsalaried borrowers, taking little or no collateral. These methods include group lending and liability, pre-loan savings requirements, gradually increasing loan sizes, and an implicit guarantee of ready access to future loans if present loans are repaid fully and promptly.

More broadly, microfinance refers to a movement that envisions a world in which low-income households have permanent access to a range of high quality and affordable financial services offered by a range of retail providers to finance  income-producing activities, build assets, stabilize consumption, and protect against risks. These services include savings, credit, insurance, remittances, and payments, and others.

HOW MF WORK ??

HOW CAN WE MEASURE THE SUCCESS OF MICRO FINANCE 1- the contribution of the income of

micro finance in GNP 2 availability of employment position 3-productivity level 4- poverty reduction

CONCEPTS MSE (micro small enter price ) it’s a project witch need micro finance

wither for manage it or to implementing always it own by one person and other worker not more than 3 workers

Small project it’s a project witch need micro finance

wither for manage it or to implementing always it own by one person and other worker not more than 7 worker,s

MICRO

POVERTY Reducing poverty has become an international

concern, yet there is no international consensus on guidelines for measuring poverty. 

In pure economic terms, income poverty is when a family's income fails to meet a federally established threshold that differs across countries. Typically it is measured with respect to families and not the individual, and is adjusted for the number of persons in a family. Economists often seek to identify the families whose economic position (defined as command over resources) falls below some minimally acceptance level.1 Similarly, the international standard of extreme poverty is set to the possession of less than 1$ a day. 

AN ACTIVE POOR is the poor people who can gain profit

TO SUCCESS MF PROJECT LoanTraining

Market researchMarketing

Helpful environment

Social culture

Strategy

MICRO FINANCE PROVIDER -formal …..banks and MFI-non formal…..intermediary - Semi formal ….NGOs

TYPES OF LENDING Individual lending Group lending

- write about micro finance services , provider of micro finance ,micro finance client and the methodology of micro finance lending ? (25 marks)

- Micro finance is to provide f&non f service to poor people to reduce poverty

- 1- financial is- 2- non financial is- Poor people is - Active poor is- Mf provider are - Mf methodology are - poverty