File Name: access to credit and access to microcredit difference in studies .zip
By means of a distinguished approach of credit granting, microcredit programs stand out as a socioeconomic alternative for social insertion and fighting against poverty. In this context, a factor that has gained prominence in literature is the female participation in these programs. Therefore, knowing that the literature indicates that there is a lower level of default among women, and considering that gender influence over the financing value has been disproportionate, the aim of this research was to evaluate the relationship between gender and the amounts which were granted in microcredit operations.
Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit , the provision of small loans to poor clients; savings and checking accounts ; microinsurance ; and payment systems , among other services.
Microfinance initially had a limited definition: the provision of microloans to poor entrepreneurs and small businesses lacking access to credit. The two main mechanisms for the delivery of financial services to such clients were: 1 relationship-based banking for individual entrepreneurs and small businesses; and 2 group-based models, where several entrepreneurs come together to apply for loans and other services as a group. Over time, microfinance has emerged as a larger movement whose object is: "a world in which as everyone, especially the poor and socially marginalized people and households have access to a wide range of affordable, high quality financial products and services, including not just credit but also savings, insurance, payment services, and fund transfers.
Proponents of microfinance often claim that such access will help poor people out of poverty , including participants in the Microcredit Summit Campaign. For many, microfinance is a way to promote economic development , employment and growth through the support of micro-entrepreneurs and small businesses; for others it is a way for the poor to manage their finances more effectively and take advantage of economic opportunities while managing the risks. Critics often point to some of the ills of micro-credit that can create indebtedness.
Due to diverse contexts in which microfinance operates, and the broad range of microfinance services, it is neither possible nor wise to have a generalized view of impacts microfinance may create. Many studies have tried to assess its impacts. New research in the area of microfinance call for better understanding of the microfinance ecosystem so that the microfinance institutions and other facilitators can formulate sustainable strategies that will help create social benefits through better service delivery to the low-income population  .
In developing economies , and particularly in rural areas, many activities that would be classified in the developed world as financial are not monetized : that is, money is not used to carry them out.
This is often the case when people need the services money can provide but do not have dispensable funds required for those services. This forces them to revert to other means of acquiring the funds. People find creative and often collaborative ways to meet these needs, primarily through creating and exchanging different forms of non-cash value. Common substitutes for cash vary from country to country, but typically include livestock, grains, jewelry and precious metals. As Marguerite S. Robinson describes in his book, The Micro Finance Revolution: Sustainable Finance for the Poor , the s demonstrated that "micro finance could provide large-scale outreach profitably", and in the s, "micro finance began to develop as an industry".
While much progress has been made in developing a viable, commercial microfinance sector in the last few decades, several issues remain that need to be addressed before the industry will be able to satisfy massive worldwide demand. The obstacles or challenges in building a sound commercial microfinance industry include:. Microfinance is the proper tool to reduce income inequality, allowing citizens from lower socio-economical classes to participate in the economy.
Moreover, its involvement has shown to lead to a downward trend in income inequality. Rutherford argues that the basic problem that poor people face as money managers is to gather a "usefully large" amount of money. Building a new home may involve saving and protecting diverse building materials for years until enough are available to proceed with construction. Children's schooling may be funded by buying chickens and raising them for sale as needed for expenses, uniforms, bribes, etc.
Because all the value is accumulated before it is needed, this money management strategy is referred to as "saving up". Often, people don't have enough money when they face a need, so they borrow. A poor family might borrow from relatives to buy land, from a moneylender to buy rice, or from a microfinance institution to buy a sewing machine.
Since these loans must be repaid by saving after the cost is incurred, Rutherford calls this 'saving down'. Rutherford's point is that microcredit is addressing only half the problem, and arguably the less important half: poor people borrow to help them save and accumulate assets. Microcredit institutions should fund their loans through savings accounts that help poor people manage their myriad risks.
Most needs are met through a mix of saving and credit. Recent studies have also shown that informal methods of saving are unsafe. For example, a study by Wright and Mutesasira in Uganda concluded that "those with no option but to save in the informal sector are almost bound to lose some money—probably around one quarter of what they save there".
The work of Rutherford, Wright and others has caused practitioners to reconsider a key aspect of the microcredit paradigm: that poor people get out of poverty by borrowing, building microenterprises and increasing their income. The new paradigm places more attention on the efforts of poor people to reduce their many vulnerabilities by keeping more of what they earn and building up their assets.
The microfinance project of "saving up" is exemplified in the slums of the south-eastern city of Vijayawada, India. This microfinance project functions as an unofficial banking system where Jyothi, a "deposit collector", collects money from slum dwellers, mostly women, in order for them to accumulate savings.
Jyothi does her rounds throughout the city, collecting Rs5 a day from people in the slums for days, however not always days in a row since these women do not always have the funds available to put them into savings. They ultimately end up with Rs at the end of the process. However, there are some issues with this microfinance saving program. One of the issues is that while saving, clients are actually losing part of their savings. There is also the risk of entrusting their savings to unlicensed, informal, peripatetic collectors.
However, the slum dwellers are willing to accept this risk because they are unable to save at home, and unable to use the remote and unfriendly banks in their country. This microfinance project also has many benefits, such as empowering women and giving parents the ability to save money for their children's education.
This specific microfinance project is an example of the benefits and limitations of the "saving up" project. Everyday 15 women would save shillings so there would be a lump sum of 1, shillings and everyday 1 of the 15 women would receive that lump sum. This would continue for 15 days and another woman within this group would receive the lump sum.
At the end of the 15 days a new cycle would start. This ROSCA initiative is different from the "saving up" example above because there are no interest rates affiliated with the ROSCA, additionally everyone receives back what they put forth.
This initiative requires trust and social capital networks in order to work, so often these ROSCAs include people who know each other and have reciprocity. The ROSCA allows for marginalized groups to receive a lump sum at one time in order to pay or save for specific needs they have. One of the principal challenges of microfinance is providing small loans at an affordable cost. Indeed, the local microfinance organizations that receive zero-interest loan capital from the online microlending platform Kiva charge average interest and fee rates of Microfinance practitioners have long argued that such high interest rates are simply unavoidable, because the cost of making each loan cannot be reduced below a certain level while still allowing the lender to cover costs such as offices and staff salaries.
For example, in Sub-Saharan Africa credit risk for microfinance institutes is very high, because customers need years to improve their livelihood and face many challenges during this time. Financial institutes often do not even have a system to check the person's identity. Additionally they are unable to design new products and enlarge their business to reduce the risk.
The high costs of traditional microfinance loans limit their effectiveness as a poverty-fighting tool. According to a recent survey of microfinance borrowers in Ghana published by the Center for Financial Inclusion, more than one-third of borrowers surveyed reported struggling to repay their loans. Some resorted to measures such as reducing their food intake or taking children out of school in order to repay microfinance debts that had not proven sufficiently profitable.
In recent years, the microfinance industry has shifted its focus from the objective of increasing the volume of lending capital available, to address the challenge of providing microfinance loans more affordably. Microfinance analyst David Roodman contends that, in mature markets, the average interest and fee rates charged by microfinance institutions tend to fall over time.
The answer to providing microfinance services at an affordable cost may lie in rethinking one of the fundamental assumptions underlying microfinance: that microfinance borrowers need extensive monitoring and interaction with loan officers in order to benefit from and repay their loans.
The P2P microlending service Zidisha is based on this premise, facilitating direct interaction between individual lenders and borrowers via an internet community rather than physical offices. However, it remains to be seen whether such radical alternative models can reach the scale necessary to compete with traditional microfinance programs.
Practitioners and donors from the charitable side of microfinance frequently argue for restricting microcredit to loans for productive purposes—such as to start or expand a microenterprise. Those from the private-sector side respond that, because money is fungible , such a restriction is impossible to enforce, and that in any case it should not be up to rich people to determine how poor people use their money [ citation needed ].
There has been a long-standing debate over the sharpness of the trade-off between 'outreach' the ability of a microfinance institution to reach poorer and more remote people and its ' sustainability ' its ability to cover its operating costs—and possibly also its costs of serving new clients—from its operating revenues.
Although it is generally agreed that microfinance practitioners should seek to balance these goals to some extent, there are a wide variety of strategies, ranging from the minimalist profit-orientation of BancoSol in Bolivia to the highly integrated not-for-profit orientation of BRAC in Bangladesh. This is true not only for individual institutions, but also for governments engaged in developing national microfinance systems.
Microfinance provides women around the world with financial and non-financial services, especially in the most rural areas that do not have access to traditional banking and other basic financial infrastructure.
It creates opportunities for women to start-up and build their businesses using their own skills and talents. Utilizing savings, credit, and microinsurance, Microfinance helps families create income-generating activities and better cope with risk. Microfinance is a sustainable process that creates real jobs, opens opportunities for future investments and helps the women clients provide for the education to their children.
Evidence shows that they are less likely to default on their loans than men. Industry data from for MFIs reaching 52 million borrowers includes MFIs using the solidarity lending methodology The delinquency rate for solidarity lending was 0.
Microfinance's emphasis on female-oriented lending is the subject of controversy, as it is claimed that microfinance improves the status of women through an alleviation of poverty. It is argued that by providing women with initial capital, they will be able to support themselves independent of men, in a manner which would encourage sustainable growth of enterprise and eventual self-sufficiency. This claim has yet to be proven in any substantial form.
Moreover, the attraction of women as a potential investment base is precisely because they are constrained by socio-cultural norms regarding such concepts of obedience, familial duty, household maintenance and passivity.
In particular, the shift in norms such that women continue to be responsible for all the domestic private sphere labour as well as undertaking public economic support for their families, independent of male aid increases rather than decreases burdens on already limited persons.
If there were to be an exchange of labour, or if women's income were supplemental rather than essential to household maintenance, there might be some truth to claims of establishing long-term businesses; however when so constrained it is impossible for women to do more than pay off a current loan only to take on another in a cyclic pattern which is beneficial to the financier but hardly to the borrower. This gender essentializing crosses over from institutionalized lenders such as the Grameen Bank into interpersonal direct lending through charitable crowd-funding operations, such as Kiva.
More recently, the popularity of non-profit global online lending has grown, suggesting that a redress of gender norms might be instituted through individual selection fomented by the processes of such programs, but the reality is as yet uncertain. The result is that microfinance continues to rely on restrictive gender norms rather than seek to subvert them through economic redress in terms of foundation change: training, business management and financial education are all elements which might be included in parameters of female-aimed loans and until they are the fundamental reality of women as a disadvantaged section of societies in developing states will go untested.
Microfinancing produces many benefits for poverty stricken and low-income households. One of the benefits is that it is very accessible. Banks today simply won't extend loans to those with little to no assets, and generally don't engage in small size loans typically associated with microfinancing. Through microfinancing small loans are produced and accessible.
Microfinancing is based on the philosophy that even small amounts of credit can help end the cycle of poverty. Another benefit produced from the microfinancing initiative is that it presents opportunities, such as extending education and jobs.
Families receiving microfinancing are less likely to pull their children out of school for economic reasons. As well, in relation to employment, people are more likely to open small businesses that will aid the creation of new jobs.
Overall, the benefits outline that the microfinancing initiative is set out to improve the standard of living amongst impoverished communities. There are also many social and financial challenges for microfinance initiatives. For example, more articulate and better-off community members may cheat poorer or less-educated neighbours. This may occur intentionally or inadvertently through loosely run organizations.
People with disabilities are barred from microcredit schemes. A literature search on the participation of people with disabilities in microcredit schemes resulted in 16 documents. The statements, recommendations and generalisations in these documents are not supported with strong evidence and are 'expert opinions' at best. Inclusion of people with disabilities within institutional schemes and self-helping schemes is recommended throughout the world. However, these seem most affected by excluding mechanisms and inclusion numbers lag behind. The absence of people with disabilities from these two schemes makes them a less attractive option.
through social processes that deprive the poor of their rightful access to social resources, The basic functional difference between micro-credit and micro-ﬁnance Unfortunately there are very few studies that discuss the micro-ﬁnance.
The paper studies the effect of a law that banned micro-credit lending in the state of Andhra Pradesh in India. Regions in Andhra Pradesh are matched to regions that did not face the ban. A difference-in-difference estimation of changes in matched regions is used to establish a causal impact on average household consumption in the region. The result is robust to cross-sectional variations in regional exposure to micro-finance prior to the ban, variation in rural and urban locations and variations in matching strategy.
This study investigates the welfare impact of microfinance on rural households in Indonesia. Its finding will bridge the gap in the Indonesian microfinance literature. The research was conducted by collecting primary data and administering a structured questionnaire to rural households in Bantul District, Yogyakarta Province, Indonesia. We employed the logistic model to measure welfare impacts of microcredit borrowers.
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Кто-то должен иметь возможность оценивать и отделять одно от другого. В этом и заключается наша работа. Это наш долг. Нравится нам это или нет, но демократию от анархии отделяет не очень-то прочная дверь, и АНБ ее охраняет. Хейл задумчиво кивнул: - Quis custodiet ipsos custodes. Сьюзан была озадачена.
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However, the connection between micro-credit interventions and standard of living, increase access to health, education and training and which is supposed Women's empowerment, keeping in mind the above definition.
Мысли Сьюзан перенеслись в прошлое, и глаза ее непроизвольно упали на листок бумаги возле клавиатуры с напечатанным на нем шутливым стишком, полученным по факсу: МНЕ ЯВНО НЕ ХВАТАЕТ ЛОСКА, ЗАТО МОЯ ЛЮБОВЬ БЕЗ ВОСКА. Дэвид прислал его после какой-то мелкой размолвки. Несколько месяцев она добивалась, чтобы он объяснил, что это значит, но Дэвид молчал. Моя любовь без воска. Это было его местью. Она посвятила Дэвида в некоторые секреты криптографии и, желая держать его в состоянии полной готовности к неожиданностям, посылала ему записки, зашифрованные не слишком сложным образом. Список необходимых покупок, любовные признания - все приходило к нему в зашифрованном виде.
Он перезагрузил монитор, надеясь, что все дело в каком-то мелком сбое. Но, ожив, монитор вновь показал то же. Чатрукьяну вдруг стало холодно. У сотрудников лаборатории систем безопасности была единственная обязанность - поддерживать ТРАНСТЕКСТ в чистоте, следить, чтобы в него не проникли вирусы. Он знал, что пятнадцатичасовой прогон может означать только одно: зараженный файл попал в компьютер и выводит из строя программу.
Убирайся отсюда немедленно, или я вырву эту булавку из твоих ноздрей и застегну ею твой поганый рот. Парень побелел. Беккер попридержал его еще минутку, потом отпустил. Затем, не сводя с него глаз, нагнулся, поднял бутылки и поставил их на стол.
Он прислушался. Голоса звучали возбужденно. - Мидж. Ответа не последовало.
С каждым мгновением появлялась новая линия, а за ней - следующая. - Они повсюду! - крикнула Соши. - Присоединяются зарубежные налетчики! - крикнул один из техников. - Уже обо всем пронюхали.
У вас какие-то проблемы. Беккер чуть нахмурился: старик говорил по-английски безукоризненно. Он поспешил избавиться от покровительственного тона. - Извините, что я вас побеспокоил, но скажите: вы, случайно, не были сегодня на площади Испании. Глаза старика сузились.
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The paper studies the effect of a law that banned micro-credit lending in the state of Andhra Pradesh in India.SofГa G. 20.05.2021 at 15:06
Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services.Butsiperla1953 23.05.2021 at 13:46
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