Micro finance is a vital necessity of the developing countries because the economic structures of these countries are not yet developed. The micro finance projects help the poor people to make an identification of their own. These projects are providing the poor people with the facility of institutional financial services.
The microfinance projects are executed through the rural and cooperative banks, other financial institutions and non-government organizations. The micro finance projects prove to be of great help to the poor and all those who are denied by the banks from any kind of financial help.
The assistance are provided for both savings and loan availing. Some of the projects are aiming primarily at the development of the rural women. Along with providing easy loans, these projects are helping the targeted people in microsavings, which are in turn proving them with some good financial options.
At the same time, some projects are providing insurance facility to the poor people as well as to their business or rather microbusiness.
Some of the ongoing micro finance projects are as follows:
Rural Microfinance Project of Ecuador aims at establishing efficient rural financial market and to build up the an efficient local financial structure. Through this project the agriculture, fishery and the livestocks production markets are expected to grow. At the same time the villagers are going to receive training on these subjects. All these efforts are expected to improve the economic structure of the villages of the developing countries.
As one of the poorest country of the world, Nepal is implementing several microfinance projects with an view to change the economic condition of the country. Primarily the projects aims at providing the women with the financial facilities. The secondary aim has been set as the poverty reduction. The development projects here are aiming at developing the employment opportunities and income of the nationals and especially of the women. The Nepal Rashtra Bank would be the implementing authority of this project and the work would be done through the non-government organizations, the rural and cooperative banks. The project is expected to provide service to 270,000 household and a major part of this is going to be women.
In Bangladesh, the Grameen Bank has shown the way of development to millions. The bank has approved its first loan in 1974 and till date it has provided more than $6 billion as micro loan. Among the borrowers, there are only 10% of male population. Rest of the borrowers are all women. The concept has been so successful that several countries are adopting the concept with an view to implement that in their own country. The bank is operating through its 1000 branches and providing services to some 28,000 villages of the country.
Last Updated on : 1st August 2013