Abstract This paper provides a rationale for one of the most widely practised mechanisms by microfinance institutions (MFIs)—simultaneous borrowing and saving. Unlike existing literature, our explanation does not involve any behavioral aspect. We study dynamic relationship between benevolent MFI borrower who is subject to an ex post moral hazard problem. The optimum contract involves simultaneo...

Microfinance has been heralded as an effective way to address imperfections in credit markets. From a theoretical perspective, however, the success of microfinance contracts has puzzling elements. In particular, the group-based mechanisms often employed are vulnerable to free-riding and collusion, although they can also reduce moral hazard and improve selection. We created an experimental econo...

The paper briefly described the operational mechanism innovation of key Microfinance Service Providers (MSPs) in Bangladesh. Grameen Bank has chosen to examine the approaches of microfinance. Grameen Bank is dominating microfinance market in Bangladesh in outreach, outstanding loans, savings, and efficient selected delivery mechanism. They offer micro-credit, savings and social services to the ...

Background: Micro Finance Institutions (MFIs) have been used as a tool for poverty alleviation in many developing economies globally, including Malawi. However, their sustainability countries has dependent solely on loan repayment, donor aid, and subsidies. Aim: This study aimed at investigating the factors that influence of MFIs Methods: A cross-sectional survey was conducted from November to ...

Objective: The objective of this paper is to understand the scope of microfinance institutions (MFI) in financing medicine for health seeker of low economic strata people. The various challenges faced by the microfinance services providers in health and medicine in particular. Some Asian countries have been chosen to observe the medicine coverage strategies. This paper will use the data from na...

This research aimed to establish the factors determining credit accessibility from Microfinance institutions among persons with disabilities in Mombasa County, Kenya. The study was carried out effect of occupation on access Institutions (MFIs) by Persons Disabilities (PWDs) County. tested hypothesis above objectives enhance realization key that constrain PWDs. anchored Credit rationing theory, ...

This study aimed at providing full coverage on the impact of microfinance Bank on poverty Alleviation in Nigeria. Microcredit firms provides small loans to poor people and small enterprises. This study provides an overview of the role and performance of micro finance in Nigeria. The major objective of the study is to examine the microfinance sector their performance and its impact on different ...

Houston Shaner Economics Honors Thesis Draft #4 A Laboratory Evaluation of Partner Selection in Group Lending Models This study attempts to simulate the group loan model employed by many Microfinance Institutions (MFIs). Specifically, an experiment using Vanderbilt University undergraduates sought to determine if positive assortative matching (PAM) occurred in the context of a pool of risky and...

Micro-finance has developed as a need-based program for empowering women and reducing poverty part of the development paradigm. One most successful strategies improving lives underprivileged via increased economic opportunity is microfinance. To reduce unemployment end poverty, microfinance programs like one discussed in this article attempt to help people start small businesses earning an inco...

A microfinance institution-driving goal is to gain profits so that they can uphold sustainable and stable growth. The internal external economic environs are both regarded as critical drivers for the performance of Microfinance. study sought assess effect loan risk diversification on financial Institutions in Western region Kenya. This was based modern portfolio theory balance scorecard theory....