Savings-led micro credit/finance is the future:
A Special Feature

Micro Credit/finance is defined as provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve living standards.

The loans and credit extended are typically small (“micro”). They are provided in varying contexts, either to individuals or groups, ranging from personal micro-credit, to small enterprise support and rural finance.... Read more

Microfinance is in news for various reasons. The United Nations, had designated 2005 as the International year of Microcredit. The Nobel Peace Price for 2006 was awarded to the Grameen Bank in Bangladesh and its founder Muhammad Yunus, a pioneer of the microcredit movement.

Micro Financial Sector (Development and Regulation) Bill, 2006 now provides the full support / oversight to the Micro Finance Sector in India. It will provide the full support / oversight to the micro Finance Sector....Read more

Microfinance organizations run their micro-financing business with money from investors or are financed by commercial banks. However, some microfinance institutions, especially well-established players in Latin America, rely heavily on depositor funding. Bank Rakyat in Indonesia has 10 savers for every one borrower. A number of traditional microfinance institutions are now assigning renewed importance to collecting deposits.

According to many experts these people also need a safe place to save their money. This becomes even more important if there are no public sector banks around. So microfinance institutions need to seriously start looking on savings-led microfinance.



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