In developing countries like Myanmar, microfinance is seen as an essential tool in helping people who are suffering financially to progress beyond poverty. It is also invaluable in empowering women to provide financial security for their families and pave the way to an improved quality of life for their children. Unfortunately, microfinance also comes with a unique set of problems.
It’s a Challenging Industry
Although it caters to an undeserved market of people who don’t have credit or banking histories, these individuals are also usually high-risk borrowers because they are generally poor. Some independent lenders use this as justification for extreme interest rates on small loans despite the reality that it is forcing people into a cycle of debt, in which they are forced to keep borrowing to stay ahead of their interest payments. While it is understandable that lenders need to make lucrative business decisions, there are ways in which efficiency can be brought into the business of microloans, without the borrower unduly suffering.
Working Together to Make Loans Work
According to Smita Ram, co-founder of Rang De, an Indian micro lending platform, the industry can balance scalability with sustainability through business mentoring. Since working closely with its borrowing communities, Ram’s company noticed that borrowers are often unsure of how to use finance effectively, and become trapped in a cycle of economic insecurity. Rang De has implemented a range of initiatives to combat this issue. While it’s not always possible for even qualified lending organizations to take a step back to assess how the loan is impacting someone, it is possible to strive towards providing financial literacy and customized loan products – which may also result in reduced risk.
Affecting Lasting Change
Going forward it is vital for developing countries like Myanmar to provide supportive financing services to its people with the aim of upgrading their lives. It is important to create awareness of available services, which is why Rang De has made financial literacy kiosks available in communities with the aim of facilitating financial education. Only through taking positive action like this can microfinance companies become part of the financial progression of developing countries.
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If microfinance can be such real, then there would be life for the poor and needy. A lot of country are also in need of this empowerment to help give the needy and average a stand.
wow!amazing, really microfinance gonna be success. It is better way to solve financial problem.Anyway i appreciate it.
Great article, very helpful carry on.Some independent lenders use this as justification for extreme interest rates on small loans despite the reality that it is forcing people into a cycle of debt, in which they are forced to keep borrowing to stay ahead of their interest payments.
I think it’s an awesome idea
nice and helpfull post
I this that this article is so informative about Future of Microfinance.It is better way to solve financial problem.Anyway i appreciate it.
Great article, very helpful for the one seeking help.
Very good article about micro finance.Very informative and content full article Thanks for sharing.
It comes with big opportunities. nice post
wow! what a awesome article I like it. Thanks.
It is very good article about microfinance. I think it is an amazing idea. I like this idea very much.
Nice post there. But micro-finance has failed to serve its main purpose in most of the developing nations, otherwise, people’s standard of living would have been better and improved.
Amazing article on topic Microfinance. Thanks to your article we have a clear prediction on the future of Microfinance.
This is a very good and informative article for micro finance and It is better way to solve financial problem.Good job.
Well, I think this is one of the best ways to help these poor people in those poor countries. There is no other way of helping them besides the power of their lucrative governments.
Very helpful post for microfinance. I really like this post because it’s post for microfinance. Thanks to sharone perlstein for this nice post.
nice and helpfull post
Nice post about Microfinance.It is very educational.It will help many people like me.keep it up.
it’s very importent post aboute Microfinance. it’s very helpful post. thanks for share this post.
Great article, very helpful carry on.Some independent lenders use this as justification for extreme interest rates on small loans despite the reality that it is forcing people into a cycle of debt, in which they are forced to keep borrowing to stay ahead of their interest payments.
Although there are some problems accompanied with Microfinancing idea I really hope that it will be successful in terms of reducing poverty like in my country.
Very informative article! Microfinance Loans is really helpful for poor entrepreneurs and small business owners. Keep it up!
Great post about microfinancing! I couldn’t agree more about the fact that only through taking positive action like this can microfinance companies become part of the financial progression of developing countries.
microfinance is a great idea to so many people who are unemployed…particularly women, can do some work and earn some money.this is a great article regarding such work.
This article has some good ideas about microfinance as Sharon posted! To help poor countries to rise from the 0, microfinance is a great solution!
Nice article. Some independent lenders use this as justification for extreme interest rates on small loans despite the reality that it is forcing people into a cycle of debt, in which they are forced to keep borrowing to stay ahead of their interest payments.
Although micro finance comes with some issues its benefits outweigh its problems. Its an empowering tool that can help many people achieve their goals.
Although micro finance comes with some issues its benefits outweigh its problems. Its an empowering tool that can help many people achieve their goals!
Very interesting and I think this could help a place like Nigeria.
Great article, very helpful for the one seeking help and the premonition for microfinance would come in handy.
Had not heard about microloans before, it sounds like a good way of poorer people being able to borrow.
Great post about microfinancing! I couldn’t agree more about the fact that only through taking positive action like this can microfinance companies become part of the financial progression of developing countries Like India.