Private funding of microcredit schemes: Much ado about nothing?

Author(s)
Gutiérrez Nieto, Begoña
Editor(s)
Eade, Deborah
Publication date
2005-06-01
Subject
Approach and methodology
Economics
Private sector
Keywords
Development methods
Finance
Microfinance

Metadata
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Publisher(s)
Oxfam GB
Routledge
Journal
Development in Practice
URI
http://hdl.handle.net/10546/130755
DOI
10.1080/09614520500076027
Document type
Journal article
Language
English
Description
Microcredit, defined as small loans to people who have no regular access to credit, is an innovative strategy in the fight against poverty. Microcredit institutions can obtain funding from private institutional investors (PIIs) that channel funds from donors, private lenders, and socially responsible investors. Private financing of development aid is likely to become more important and microcredit presents an investment opportunity within this context. Microcredit institutions (MCIs) need to become more transparent, however, and require more incentive to seek commercial funding rather than relying on subsidies. With better information about MCIs, PIIs could achieve more impact with their investment.
Pages
12
ISSN
0961-4524
EISSN
1364-9213
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