history of micro finance

1. Ms : Heba Hassan - +249906850429

2.  Microfinance is nothing new communities worldwide
have developed their own financial systems which
enable people to mange shortfall of cash and provide
lump sum amount for particular accessions and safe
places to save . For ex
 Rotational saving and credit saving associations
(ROACAs)

3. Where group members pay a certain sum into a common
put every week and a different member takes the
money each week are common throughout the world

4. Informal credit markets where rich individuals will lend
to others at high rates but without collateral are
similar widespread
In many places these are the only financial services
available to poor people ,but in other they co-exist
with mf program

5.  Making use of social collateral there was little knowledge
among formal sector financial
intermediaries of alternative to physical collateral until
the1970s when grameen bank in bangladesh began using
peer group monitoring to reduce lending risk

7.  . However, the pioneering of modern
microfinance is often credited to Dr.
Mohammad Yunus, who began experimenting
with lending to poor women in the village of
Jobra, Bangladesh during his tenure as a
professor of economics at Chittagong
University in the 1970s. He would go on to
found Grameen Bank in 1983 and win the Nobel
Peace Prize in 2006. (http://globalenvision.org)

9.  Since then, innovation in microfinance has continued
and providers of financial services to the poor
continue to evolve. Today, the world bank estimates
that about 160 million people in developing countries
are served by
microfinance. (http://web.worldbank.org)

10.  1950 :total Depended on the informal sector
 Money Leander play a major role

11. From 1950 governments and international aid donor
subsidies credit delivery to small farmer in rural areas
of many developing countries . It was assumed that
poor people found great difficulty in obtaining
adequate volumes of credit and were charge high rate
of interest by money lender.
Development finance institutions , such as agricultural
banks were responsible for the delivery of cheap credit
to poor famers

12.  depend on donor program
 CBOs
 Agriculture banks

13.  Turn into mf program based on commercial basic
 There’s a success international experience (Grameen
bank , Rakyat ex)

14. Since the 1980s development theories have increasingly
argued for the provision of small loan to micro-enter
preneure as an effective policy instrument in the fight
against poverty

15. During 1990 the provision of financial services dealing
with very small deposit and loans mf and particularly
the provision of micro credit have been increasing as
in effective means of poverty reduction
There is continuing and quite rapid improvement in
understanding how financial services for poor can best
be provided

16.  Expanding in systematic MF biased on commercial
basic with formal and informal sector

17.  Refences
 Dr isalh note
 C gap