Write up on Microfinance
On 18th of March we had a session on microfinance and Mr. Vijay Kulkarni was the instructor. He explained in detail about it and tried to give a clear picture. He shown a video on braking through poverty. Mohmmad Yunis of Bangladesh has given great contribution to it.
Microfinance means the provision of financial services that includes credit, savings, insurance, etc to those living in poverty and excluded from the financial system. These people do not have income and do not own property, therefore unable to provide bank guarantees and sureties.
As the financial services of microfinance usually involve small amounts of money, small loans, small savings etc and provides financial service to the poor at their door step. The term "microfinance" helps to differentiate these services from those which formal banks provide
I found the importance of microfinance as follows.
Their income is not enough to manage crises such as illness, emergencies, marriage, etc and lack of access to safe formal deposit services
Ø To help to overcome of indebtedness
Ø To uplift the social and economic status
Ø To help fulfill the basic needs
Ø To strengthen the standard of living
Ø To start a small business to generate income
Ø To make them realize their potentialities
Ø To make capable of compete with others
Thus it has given solid concept and it was helpful session to me.