Originated in 1974 in Bangladesh, when Grameen Bank started giving loans to farmers to get the required machineries/instruments for the processing of their respective agricultural products.
With more than 77% of the 37 million MFI’s customers live in Asia and with an annula growth rate of 15-20% in MFI global market in 2015.Microfinance is still the term less known and less thought of when thinking of a getting a lon for daily requirements. Here Sanketh from YE making you understand what microfinance is:
Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services.
India is a land of startups which ranks 3rd among most active startups. Sadly, nearly half of all start-ups aren’t making their way to the doors of success. This failure of small businesses is due to lack of funding, not hundreds of crores but thousands of rupees.
From a couple of years there has been a surge of microfinance institutions offering a solution by offering microloans
A microloan is defined as a very small, short-term loan with a low interest rate, usually extended to a start-up company or self-employed person. Typically, these loans do not exceed few lakhs. Microloans have been successful in helping to support entrepreneurship and encourage economic growth in these developing nations.
In recent times, micro lenders are establishing themselves. At times, individual do not will to contribute the whole amount and few of them join together. Others are finding creative ways to improve and streamline the process.
It is clear that microloans present a competitive alternative to traditional banking institutions and are transforming lending practices. This new source of credit is creating a lifeline of capital for small businesses and helping them continue to grow, even in the most competitive of markets.
Traditional banks might not be interested to invest in low income or unemployed entrepreneurs, no matter how viable their ideas are. With the use of technology, internet and awareness micro finance organizations are trying to end this problem.
If microloans sounds like something which will work for you, here are to dos :
1. Figure out the total money needed and if you can repay accordingly
2. Talk to a micro lender or online micro lending platforms
3. If you have an idea and don’t know how to proceed further or to make a business plan you can contact Social Scientists
4. You should be ready to invest your own money first and show the proof of your idea.
Notable platforms to check: