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What are the key elements in microfinance success stories?

2024-11-11 20:41
Anonymous
2024-11-11 22:30

Trust is a key element. Lenders need to trust borrowers to repay the loans, and borrowers need to trust that the lending process is fair. For example, in Grameen Bank, the group - lending model builds trust among borrowers as they are accountable to each other.

More Answers

The last but not least key element is a flexible repayment system. Since microfinance borrowers often have irregular incomes, a flexible repayment plan allows them to repay the loan without excessive stress. Some microfinance institutions offer seasonal repayment options for farmers, which align with their harvest cycles. This flexibility has contributed to the high repayment rates and overall success of many microfinance programs.

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