What are typical MFI products?
Loans. Microfinance programs primarily extend loans to individuals or groups for income generating activities. The loans typically have duration of three months to one year. Often repayments are weekly or biweekly. Interest may be included in each payment or, in some regions, paid up front. Interest is typically calculated on a simple rate basis. Other, less frequent, types of loans may be for agricultural production, home improvement or home mortgages. Savings. This is sometimes called the forgotten half of microfinance. It is a critical service but can typically be offered only by regulated institutions. Many MFIs are permitted to offer some type of savings deposit option. In fact, a CGAP 2004 survey of financial institutions serving the poor determined there are four times as many savings accounts as loans. Lines of credit. Some MFIs also offer lines of credit with multiple, irregular drawdowns or tranches and various repayment schedules. Insurance. This is an important product offe
