scholarly journals Evaluating the Impact of Microfinance for Women in Albania

2016 ◽  
Vol 4 (2) ◽  
pp. 233
Author(s):  
Oltiana Muharremi ◽  
Filloreta Madani ◽  
Erald Pelari
Keyword(s):  
Social Influence ◽  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Empirical Investigation ◽  
Social Value ◽  
Microfinance Institutions ◽  
The Poor ◽  
The Impact ◽  
Micro Enterprises

<p class="Default"><em>Microfinance is defined as any activity involving the offering of financial services such as loans, savings and insurance to individuals with low income.</em><em> </em><em>Creating social value includes reducing poverty and having a better impact to improve living conditions through capital for micro-enterprises; insurance and savings deposits for reducing risk and boosting consumption. Worldwide microfinance actors promote access to basic financial services by developing new tools, a variety of products and the adoption of an integrated banking access.</em></p><p class="Default"><em>Initially, microfinance was largely gender neutral: it sought to provide credit to the poor who had no assets to pledge as collateral. It quickly emerged, however, that women invested their business profits in ways that would have a longer-lasting impact on their families and communities. Consequently women became fundamental to the success of the microfinance model as a poverty alleviation tool. The purpose of this article is to examine the impact of microfinance loans in improving the lives of women borrowers, as well as in strengthening their social influence and the microcredit impact in promoting savings. This study is based on an empirical investigation of 384 structured questionnaires and surveys directed at microfinance institutions and their clients in the regions of Vlore and Fier, Albania.</em></p>

scholarly journals INTEREST FREE MICROFINANCE: A GATEWAY OF FINANCIAL INCLUSION FOR KERALA

2016 ◽  
Vol 4 (4SE) ◽  
pp. 51-58
Author(s):  
Fazal Muhammed
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Household Income ◽  
Poverty Alleviation ◽  
Development Process ◽  
Financial System ◽  
Economic Security ◽  
Local Economies ◽  
Goods And Services ◽  
The Poor

Microfinance is a powerful poverty alleviation tool. It implies provision of financial services to poor and low-income people whose low economic standing excludes them from formal financial systems. Access to services such as, credit, venture capital, savings, insurance, remittance is provided on a micro-scale enabling participation of those with severely limited financial means. The provision of financial services to the poor helps to increase household income and economic security, build assets and reduce vulnerability; creates demand for other goods and services; and stimulates local economies. A large number of studies on poverty however, indicate that exclusion of the poor from the financial system is a major factor contributing to their inability to participate in the development process. In a typical developing economy the formal financial system serves no more than twenty to thirty percent of the population. The vast majority of those who are excluded are poor.

scholarly journals The Islamic Microfinance System And Its Ultimate Impact On The Poor In Bauchi Metropolis In The Context Of Socio-Economic Challenges

2021 ◽  
Vol 5 (1) ◽  
pp. 95-101
Author(s):  
Hashim Sabo Bello ◽  
Shamsuddeen Abubakar ◽  
Sunusi Abdulkadir Fateh
Keyword(s):  
Social Services ◽  
Low Income ◽  
Financial Services ◽  
Poor People ◽  
Microfinance Institutions ◽  
Islamic Microfinance ◽  
And Gender ◽  
High Level ◽  
Financial Transactions ◽  
The Impact

One of the conditions for providing social services to the population, reducing the differentiation of their incomes, as well as reducing poverty is to provide equal access to financial services for all segments of the population. Despite high unemployment and a significant number of poor people, only about a few thousand Nigerians today use Islamic microfinance services. The main purpose of this study is to study the impact of the Islamic microfinance system on the financial situation of the population. The study is based on the principles of the theory of positivism. Methods of deduction, statistical analysis, and survey served as methodological tools. The authors of the article developed a structured questionnaire, the analysis of which allowed to analyze the attitude of citizens to Islamic microfinance services. A representative sample of citizens of the metropolis Bauchi with different levels of wealth, age and gender was selected for the study. According to the results of the survey, the development of special microcredit programs for low-income people allowed to finance the start of their own business, thus providing their own and household members’ employment. The main factors hindering the development of microfinance in Muslim countries are the high level of non-repayment of borrowed funds, imperfect infrastructure, the presence of Sharia bans on certain types of financial transactions. The results of the study showed the need for an active information campaign aimed at explaining the benefits of using macro-financial services and their accessibility for low-income citizens, as well as expanding the network of microfinance institutions throughout the metropolis. These measures will create conditions for the development of small business in the country, and as a consequence reduce poverty and reduce the number of unemployed in the country.

scholarly journals Alleviating Poverty Through Islamic Microfinance: Factors and Measures of Financial Performance, and Roles of Islamic Values and Financial Policies

2019 ◽  
pp. 1266-1273
Author(s):  
Adhitya Ginanjar ◽  
Salina Kassim
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Financial Education ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Financial Policies ◽  
The Poor ◽  
Depth Interview ◽  
Rich Information ◽  
Islamic Microfinance

Indonesia has a strong presence of microfinance sector with the number of Islamic Microfinance Institutions (IMFIs) estimated to be around 5,000 currently. Microfinance is an effective tool in alleviating poverty in Indonesia due to the limited access to financial services by the poor who accounted for approximately 96 million Indonesians (or 37% of the total population), living on less than USD 1.90 a day. In the absence of collateral and steady income, the poor are considered too risky to be given credit facilities by the formal financial services providers and living in remote areas has also limited their access to formal financial services. This study aims to examine the poverty alleviation efforts from the perspective of the IMFIs in view of their direct involvement in the process and having rich information about financial issues facing the borrowers. The managers also understand about financial inclusion agenda as well as financial guidelines and regulations issued by the relevant authorities. A total of 34 managers of Baitulmaal Wa Tamwil (BMTs), which registered under the Sharia Cooperative Centre (INKOPSYAH) are taken as respondents from the Jakarta, Bogor, Depok, Tangerang and Bekasi (JABODETABEK) areas. The first instrument was a survey questionnaire, and the second one was an in-depth interview to outline data related to the model design. The findings of this research are expected to contribute to better decision-making for the BMTs to further enhance its role in alleviating poverty. The findings also elaborate several dimensions to improving financial inclusion among the poor including providing financial services, implementing Islamic principles, significant policies, community-based framework concept and training financial education. This research highlights the need for a variety of strategies to warrant success of poverty alleviation efforts by BMT.

scholarly journals The Equity and Efficiency of Microfinance

2010 ◽  
Vol 3 (1) ◽  
pp. 11-17
Author(s):  
Mahazarin Kanga ◽  
Juhi Bansal ◽  
Siddharth Verma ◽  
Ishani Bandaranayake
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Social Benefits ◽  
Poor People ◽  
Microfinance Institutions ◽  
The Poor ◽  
Equity And Efficiency ◽  
Social Opportunities ◽  
The Common ◽  
Global Population

Banks are for people with money rather than for people without money. However, microfinance is banking for the unbankables. It brings credit, loan, savings and other essential financial services within the reach of millions of people who are too poor to be served by regular banks, i.e. almost 60-90% of the global population. It is one of the most intriguing features of financial economics today. In the aftermath of the 2006 Nobel Peace Prize being awarded to the Bangladeshi, Mohammed Yunus, who is a champion of the cause for microcredit, the common presumption has been that microfinance create s undeniable social benefits such as poverty alleviation and more equal social opportunities. Indeed, this is true to a large extent; however, less acknowledged are the problems that lurk behind this facade of ‘social service’. Donning the caps of economists, this pa per discusses the economic rationality of microfinance as an effective tool for achieving poverty alleviation. We ask the question on whether the theoretical objective of microfinance for ‘helping the poor’ is sullied in practice by rent seeking, profit seeking and corruption. We assess the fundamental economic model for the basis on which Microfinance Institutions (MFIs) provide loans to the poor and as whether the poor people eventually benefited from this financial innovation.

scholarly journals Predicting The Impact of Commercialization Factors on The Social Mission of Islamic Microfinance Institutions for Muslim Community

2020 ◽  
Vol 6 (1) ◽  
pp. 14
Author(s):  
Hesi Eka Puteri
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Quantitative Research ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Muslim Community ◽  
Social Mission ◽  
The Social ◽  
Community Banking ◽  
The Impact

<p class="abstrak">As a community banking operating in Islamic principles, Islamic rural banks are faced with two performance targets namely financial performance and social performance which are both interrelated. This study examined the impact of commercialization factors covering profitability, regulation, and competition on the social performance of Islamic rural banks. This study was quantitative research based on a survey on six units of Islamic rural banks in West Sumatera province of Indonesia from 2012 to 2018. Data collected from the publication of financial services authority and other financial documents at Islamic rural banks then analyzed with panel data regression. The findings of this research showed that profitability and competition influenced social performance. Meanwhile, there was no regulation’s impact on social performance.  Regulatory factors that were initially expected to strengthen the social responsibility mission of Islamic rural banks, did not stimulate the increase of social performance. This study reveals the importance of the commercialization factor in improving the social performance of Islamic rural banks by increasing the social benefits through providing financial services for the low-income Muslim community.</p><p class="abstrak" align="left"> <em>Sebagai sebuah community banking yang beroperasi dalam prinsip-prinsip Islam, BPR Syariah dihadapkan pada dua target kinerja yaitu kinerja keuangan dan kinerja sosial yang keduanya saling terkait. Penelitian ini bertujuan untuk menguji dampak dari faktor-faktor komersialisasi yang meliputi profitabilitas, regulasi dan kompetisi terhadap kinerja sosial BPR Syariah. Penelitian ini menggunakan pendekatan kuantitatif berdasarkan survei pada enam unit BPR Syariah di provinsi Sumatera Barat Indonesia dari tahun 2012 hingga 2018. Data dikumpulkan dari publikasi Otoritas Jasa Keuangan dan dokumen keuangan lainnya di BPR Syariah kemudian dianalisis dengan regresi data panel. Hasil penelitian ini menunjukkan bahwa profitabilitas dan persaingan berpengaruh terhadap kinerja sosial, sedangkan regulasi tidak berpengaruh terhadap kinerja sosial. Faktor regulasi yang semula diharapkan memperkuat misi tanggung jawab sosial BPR syariah, ternyata tidak merangsang peningkatan kinerja sosial. Studi ini mengungkap akan pentingnya faktor komersialisasi dalam meningkatkan kinerja sosial BPR syariah dengan meningkatkan manfaat sosial melalui pemberian layanan keuangan untuk masyarakat muslim berpenghasilan rendah.</em></p><p class="abstrak"> </p>

scholarly journals Evaluating the Impact of Microfinance at the Individual Level in Albania, Particularly in the Region of Vlora and Fier

2018 ◽  
Vol 1 (1) ◽  
pp. p143
Author(s):  
Oltiana Muharremi ◽  
Edlira Luҫi ◽  
Filloreta Madani ◽  
Erald Pelari
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Way Of Life ◽  
Individual Level ◽  
Right To Development ◽  
Micro Insurance ◽  
The Individual ◽  
The Impact ◽  
Micro Credit

Microfinance is defined as the provision of financial services such as micro-credit, micro savings, and micro insurance for individuals with low income. Although access to micro credit is seen as a right to have credit, it rather represents a right to development and economic initiatives that could change the borrower’s way of life. The purpose of this article is to examine the impact of microfinance loans in improving the living conditions of borrowers. This study is based on an empirical investigation of 384 structured questionnaires directed at microfinance institutions in the regions of Vlore and Fier, Albania.

Impact of Financial Inclusion on Indian Economy

Think India ◽  
2019 ◽  
Vol 22 (3) ◽  
pp. 563-569
Author(s):  
BHARTI
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Fortune 500 ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Indian Economy ◽  
The World ◽  
Banking Institution ◽  
The Impact

Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society. The term financial inclusion has evolved since late 2000 and it’s directly correlated to poverty. More and more Indian companies are trying to enter in the list of fortune 500 and one of our Indian entrepreneurs appears in the list of the top five richest persons of the world. Financial inclusion has become an evolving paradigm of economic growth that plays very significant role in poverty alleviation. The main objective of the study is to analyze the impact of financial inclusion in the growth of Indian economy and the initiatives taken by the banking institution in India to attain inclusive growth.

scholarly journals Assessing the Determinants of Operational Self-Sufficiency of Microfinance Institutions (MFIs) in Afghanistan

2018 ◽  
pp. 31-48
Keyword(s):  
At Risk ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Microfinance Institutions ◽  
Economic Activities ◽  
Loan Portfolio ◽  
The Poor ◽  
Self Sufficiency ◽  
Significant Factors

Microfinance Institutions (MFIs) started providing financial services in Afghanistan since 2003 to take part in poverty alleviation and providing micro loans for the poor entrepreneurs enabling them to expand their economic activities. Since the inception, the Microfinance sector in Afghanistan experienced serious ups and downs and most of the MFIs collapsed and could not become sustainable. Therefore, the aim of this study is to assess the determinants of MFIs sustainability in Afghanistan. To best of researcher’s knowledge, yet, no quantitative researches have been done in the context of Afghanistan to assess the determinants of MFIs sustainability. Using 2SLS econometrics approach through STATA and Eviews, the data of 5 MFIs from 2004 to 2015 was used to assess the determinants of MFIs sustainability. The research’s findings reveal that number of offices, total gross loan portfolio, operational expense to gross loan portfolio and portfolio at risk are statistically significant factors which determine the operational self-Sufficiency of MFIs in Afghanistan. However, other finding of this research shows that ratio of deposit to loan and total expenses to assets have not significant impact on the operational Self-Sufficiency of MFIs in Afghanistan during the study period.

The narrow and broad argument of microfinance impacts on small- and medium-sized enterprises in Ghana

2019 ◽  
Vol 11 (4) ◽  
pp. 118-127
Author(s):  
Solomon Arhin
Keyword(s):  
Monitoring System ◽  
Low Income ◽  
Financial Services ◽  
Crucial Role ◽  
Service Providers ◽  
Financial Service ◽  
Market Failures ◽  
The Poor ◽  
Microfinance Institution ◽  
The Impact

Microfinance has become a popular and fashionable word in financial and development circles. In practice, the term was often used more narrowly to refer to loans and other services from providers that identify themselves as microfinance institution. Indeed, the concept of microfinance was not new in Ghana. Microfinance plays a very crucial role in the area of addressing the market failures with regard to the provision of financial services to the low-income customers who until recently were receiving little or no help from the conventional financial service providers. This study examines the impact of microfinance on the operations of small- and medium-scale industries in Ghana – focusing on Tafo area of Ashanti region. The study uses sampling size of 91 clients. Data were collected through questionnaire. The findings reveal that most of the microfinance clients take loans to expand their personal businesses. The study recommends an effective monitoring system to be put in place to correct the poor collection mechanism that is currently facing the firms. Keywords: Microfinance, small- and medium-sized enterprises, Tafo district  

Microfinance: The Impact of Multiple Borrowings of Microcredit among Clients of Microfinance Institutions in Central Uttar Pradesh Region of India

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Zain Mehdi
Keyword(s):  
Interest Rates ◽  
Financial Services ◽  
Private Equity ◽  
Uttar Pradesh ◽  
Microfinance Institutions ◽  
Non Profit ◽  
Loan Contracts ◽  
For Profit ◽  
The Poor ◽  
The Impact

Microfinance is the supply of loans, savings, and other basic financial services to the poor. Beginning of the microfinance movement is most closely associated with the economist Muhammed Yunus, who in the early 1970's was a Professor in Bangladesh. In the midst of a country-wide famine, he began making small loans to poor families in neighboring villages in an effort to break their cycle of poverty. The study has focused on the repayment problems of loans to be taken by the clients of ‘For Profit Making Microfinance Institutions (MFIs)’. Micro financing has boomed in recent years. Though founded as non-profit institutions, Indian Microfinance industry has been turbocharged by private – equity firms, nearly doubling in the year ended March 31, 2008 delivering $ 2.5 billion loans. Many microfinance lenders have recently registered as for – profit finance firms with the Reserve Bank of India, giving them wider access to funds but limiting them to ‘reasonable’ interest rates. Those rates are still high – between 20% and 40% annually, according to the Consultative Group to Assist the Poor, or CGAP, hosted at the World Bank location. This creates the need for multiple borrowings. In this research, the researcher has used the regression analysis to study the effect of Age, Gender, Number of Dependent and Education level due to multiple loan contracts. Further, the relationship between variables taken in this research has been analyzed such as income of respondents and amount of loans. The findings show that actually, the multiple borrowings of clients of MFI’s are not benefiting them and in reality they are affecting their livelihood.

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