Providing financial resources and information on the microfinance industry to investors, borrowers, and professionals.
Microfinance Restores Communites

Microloans and Their Social Impact

Microfinance isn't humanitarian aid. Microfinancing promotes self-sufficiency and economic growth by encouraging the proliferation of micro entrepreneurs like farmers and small business owners in impoverished communities.

As of 2008, microfinance institutions had granted more than $100 million in microloans. Microloans allow poverty stricken farmers, businessmen, and families an opportunity to borrow funds for enterprises which may allow them to become financially stable - and it's working.

Microfinance Institutions

The Growing Microfinance Industry

As of 2007, there were 33 million approved microborrowers. By 2020, growth is projected to more than 200 million borrowers. This industry's rapid increase has been steady over 20 years and is forecast to have an even brighter future.

There are thousands of microfinancing institutions like Association for Social Advancement (ASA) in Bangladesh, Annapurna Microfinance in India, and Banco do Nordeste in Brazil with years of experience and knowledge.

Microfinance Investment Process

Microfinance: Investment Process

Microcredit or microlending is the popular idea of offering financial services to the poor while offering lenders a high return, low cost investment. Even foreign lenders, private and commercial, have begun to provide microfinance services.

In 2006, around $6 billion of foreign investment had been funneled into microfinance institutions. In 2008, that number jumped to nearly $15 billion. Proving reasonable returns at low costs, microlenders can receive just as many rewards as the borrowers themselves.

What is Microfinance?

Microfinancing is a financial service made available to impoverished individuals who do not meet typical banking qualifications. Microfinance institutions create a rare opportunity for borrowers to access the financial system. For example, with farm financing, an impoverished farmer may access capital that he can then use to scale his business to provide food to his community and income for his family.

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What is IFMR?

The Institute for Microfinance Research provides financial resources to microborrowers and investors. Have you taken an interest in this fairly new financial industry? You're not alone. Offering an approximate 98% repayment rate for investors and providing a small cash loan for those battling poverty, the microfinance market gives both parties incentive to participate.

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How does microfinance help low income communities?

There are thousands of microfinancing institutions catering to eligible borrowers and investors. If you are a borrower, chances are you have these financial institutions available near you. A microloan can finance agricultural expenses and farm land leases, pay for materials used to start a small business, cover essential medical expenses, and more.

Impoverished individuals who are generally excluded from traditional financial services can apply for microfinancing to pay for farm and agricultural expenses, healthcare, small business expenses, and more.

For those looking to expand their financial portfolio, investors should remember to notice how the market is evolving. Microcredit first began with an idea from Muhammad Yunus in 1976. The microfinance system has proven beneficial to the investor - not just the borrower. These loans provide low income families a chance to lift themselves out of poverty. Microfinance provides small amounts of cash with affordable interest rates. Since low income borrowers are usually denied by commercial banking institutions, those who are granted a microloan tend to be loyal when given access to credit. Often, these individuals return to secure a second microloan, start a savings account, or begin investing in a microfinance insurance plan. This investment opportunity shows no signs of slowing down. The Institute for Microfinance Research explores microfinancing in depth, the newest peer to peer investment opportunity.

Microfinance Infographic