Microfinance notes

Microfinance is a general term used to describe financial services to low income individuals or to those who do not access to typical banking services. Microloans loans people money to help them get a kick start in a small business that they think will be beneficial to their village or town, it also helps investments in infrastructure, education, and legal reforms.

Microfinance provides people who don’t have money to start a business, for medical help, for school things etc…  it helps businesses start up and then stay running, it helps local economy and helps people pay for insurance.  It is an opportunity for less fortunate people to have stuff they normally couldn’t afford

In developing countries most of the people are poor, they are the least likely to be helped by regular banks. Problems in developing  countries that can be helped by microfinance would be malaria, drought, and clean water.

Malaria is a life threatening disease that is transmitted by mosquitoes. It was thought it was a thing that came from old marshes, it can be fatal. Every year malaria causes 665 thousands death. Every minuet a child dies from malaria.  Nets are how you stop them and bill gate and Malinda are the biggest donates.

With more small businesses there is a larger chance of having a bigger more successful businesses.

A micro lender is an organization that makes business loans to individuals who are not able to obtain financing from traditional lenders. They typically charge higher than average interest rates.

Lack of supplies, poor health care, poverty, pollution, electricity Is weak, diseases, famine, drought

A microloan is when a person lends a small amount of money to a developing businesses, once it is running the lender will receive their money back.

Benefits the community besides just one person. It allows people not have to go to the bank to have to pay expensive interest rates. A microentreprenurs with capital needed to operate to expand their business.  They allow people to switch professions that interest them more. It allows small business owners to access insurance.