Egerta MARKU

Abstract “Microfinance” is often defined as financial services for poor and low-income clients offered by different types of service providers. More broadly, microfinance refers to a movement that envisions a world in which low-income households have permanent access to a range of high quality and affordable financial services offered by a range of retail providers to finance income-producing activities, build assets, stabilize consumption, and protect against risks. These services include savings, credit, insurance, remittances, and payments, and others. The purpose of this position paper is: (i) obtain strategic clarity through discussing microfinance’s role in our days (ii) outline the future principles and focus in microfinance. The paper identifies areas of opportunity where microfinance could be harnessed to play a greater role, as well as its limitations in this context.
Keywords microfinance, loan, credit
JEL classification G23
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