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Explore the different ownership forms in Community-Based Microfinance, comparing institutional approaches like banks and MFIs with community-based, member-owned methodologies. Learn about the scale of aggregation, services/products offered, and influencing factors affecting these microfinance models.
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Community Based MicrofinanceTypology Anuj Jain May 2011
Microfinance Approaches Key difference Institutional Approaches/ Banks/ MFIs Community Based, Members Owned Microfinance methodologies Ownership Formal Regulated/ registered Informal Financial / Support org Federation/ II Tier and/ or III Tier organization Scale of aggregation Credit Unions and large Coops. SACCOs/ RuSACCOs/ FSAs Size of primary group membership/ geographical cover Range of services and products Finance +/ Multipurpose Only Financial Self Help Groups VSLA/ Savings Groups Only savings V/s External capital More integrated in market system Less Integrated/ more decentralized Influencing Factors - location, Livelihood opportunities, gender; governance and management capacity, range of finance products, financial and institutional viability; linkages with formal sector; resources and goal of promoting org.