Where do MFIs get the money for loans?
Grameen Foundation provides funding for MFIs through direct loans, grants, loan guarantees and other innovative financing techniques. Other funding comes from individuals, philanthropists, foundations, and governments and international institutions such as the World Bank. MFIs also borrow funds from traditional banks to loan to their clients. In addition, the interest paid by clients on microfinance loans goes back into the program to cover costs and fund more loans. One of the most attractive features of microfinance is the goal of self-sufficiency for both microentrepreneurs and MFIs. Grameen Foundation is spearheading several initiatives to give MFIs access to the private market financing options available to traditional banks. By combining access to private market financing with more efficient management and technology, MFIs can begin to move from reliance on philanthropy to self-sufficiency. Grameen Bank in Bangladesh has proven that this can be accomplished. It is totally self-su
