What do local microfinance institutions (MFIs) do?
These front line organizations reach out to the very poor and deliver microfinance services to local clients daily. They educate local communities about the opportunity to improve their lives with microfinance; make microloans and provide other financial services such as savings accounts and insurance; collect weekly loan payments; and assist clients in solving some of the life challenges they may face. Many also provide social services, such as basic health care for clients and their children. MFIs differ in size and reach: some serve a few thousand clients in their immediate area, while others serve hundreds of thousands of very poor people through hundreds of branches covering large regions. Grameen Bank of Bangladesh, which was founded by 2006 Nobel Peace Laureate Dr. Muhammad Yunus, is the worlds largest and most successful MFI. It serves more than seven million clients.
These front line organizations reach out to the very poor and deliver microfinance services to local clients daily. They educate local communities about the opportunity to improve their lives with microfinance; make microloans and provide other financial services such as savings accounts and insurance; collect weekly loan payments; and assist clients in solving some of the life challenges they may face. Many also provide social services, such as basic health care for clients and their children. MFIs differ in size and reach: some serve a few thousand clients in their immediate area, while others serve hundreds of thousands of very poor people through hundreds of branches covering large regions. Grameen Bank of Bangladesh, which was founded by 2006 Nobel Peace Laureate Dr. Muhammad Yunus, is the world’s largest and most successful MFI. It serves more than seven million clients.
