HOW MICROFINANCE WORKS:
KEY CONCEPTS AND MECHANISMS
KEY CONCEPTS:
- Financial Inclusion: Ensuring everyone, regardless of income, has access to financial services.
- Poverty Alleviation: Providing economic opportunities to lift people out of poverty.
- Economic Empowerment:Helping individuals take control of their financial futures.
- Sustainability: Offering services that help people build resilient lives.
MECHANISMS OF MICROFINANCE:
- Group Lending: Borrowers form small groups
responsible for each other’s loans, promoting
accountability. - Solidarity Groups: Similar to group lending, these
promote social cohesion. - Joint Liability: Group members share responsibility for loans, fostering shared accountability.
- Microcredit: Small loans for income-generating
activities. - Microsavings: Savings accounts that encourage
regular saving habits. - Microinsurance: Insurance products covering health, life, and property.
How Microfinance Works:
Key Concepts and Mechanisms
Microfinance is more than just lending money; it’s about building a sustainable future for communities. Here’s a closer look at how it works:
MIDLAND MICROFIN: TRANSFORMING LIVES SINCE 2011
At Midland Microfin, our approach is structured yet flexible to meet the unique needs of our clients. We start with area surveys to understand the local economic landscape, followed by sensitisation campaigns to inform potential clients about our services. Introduction meetings explain the benefits and criteria for forming Joint Liability Groups (JLGs).
Once a group is formed, they undergo Mandatory Group Trainings (MGTs) to learn about the lending process and credit discipline. After thorough investigations, loans are sanctioned and disbursed, with options for cash or cashless transactions.
ONGOING SUPPORT AND TRAINING
Our commitment doesn’t end with disbursement. We conduct End Use Verification (EUV) to ensure loans are used for their intended purposes and provide regular monitoring and training. Our comprehensive approach includes classroom sessions, fieldwork, and system training to ensure high-quality service delivery.
By leveraging these unique mechanisms, Midland Microfin empowers people to break the poverty cycle, secure better futures, and contribute to their communities’ economic development.