It provides a summary overview of Microcredit issues for quick reference. Select the links for a full section of Guide material relevant to each heading.
Upscaling Outreach of Microcredit: In order to reduce world poverty ratios by half by 2015, microfinance initiatives need considerable impetus. In order to achieve poverty ratios of this magnitude, upscaling microfinance becomes imperative for microfinance institutions and advocators all over the world. Upscaling would require:
· Replications of alternative populist models like SEWA Bank, Grameen and ASA models [Bangladesh], Banco Sol etc.
· For facilitating micro entrepreneurs to have greater access to the formal financial systems, microfinance institutions will have to become licensed. Transformation of MFIs from informal or semi informal institutions to more formal structures would further lend impetus to the upscaling process.
· In the process of transformations, organizations will have to move from traditional products of savings and loans to more innovative product lines.
· Reaching the poorest of the poor will require special efforts on behalf of the practitioners, donors and formal financial institutions. Experiments to upscale microfinance have already been initiated, effective partnership, governance and innovations should enable the microfinance sector to meet the challenge of upscaling microfinance to achieve the desired outcome of poverty reduction.
Sustainability of Microfinance: (Read the rest on the article on this page of OneWorld.net).