Microfinance policy

21 July 2010

Over the last twenty years the poorest people in the world have proved that they can save and that they are credit worthy. Even so, those living in poverty, and especially women, are usually subject to economic and social forces which exclude them from microfinance services. Concern believes that the poor should have access to microfinance services to assist them to lift themselves out of poverty.

Microfinance is characterised by the frequency and small size of transactions and by the absence, in most cases, of physical collateral. Microfinance services can include savings, credit and loan insurance. They may also include facilitation of access to insurance such as health and crop insurance, encashment of foreign remittances and other services. In order to increase access for the poorest to microfinance, Concern’s interventions will include policy advocacy, mobilisation of the poor and support to microfinance organisations (MFOs).

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