Microfinance for Rural Entrepreneurs

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Microfinance for rural entrepreneur Microfinance institutions are institutions that offer basic financial services to the low income earners and the poor. The emergence of Microfinance institutions are rooted on the fact that most financial institutions offer financial services that are far much beyond the reach of the low income population. Microfinance institutions have been designed to bridge the gap and fill the void left by the major banks to bank the unbankable and offer various financial services such as loans, insurance, savings and other basic financial services. Majority of the rural population have been marginalized and major financial institutions have either pooled out their financial services from these regions due to low business volumes. Rural entrepreneurs for a long time were not empowered and lacked the financial infrastructure to support their skills and to promote the entrepreneurial culture and drive them out of poverty bracket. Rural entrepreneurs have different needs which cannot be catered for by the major financial institutions hence, the microfinance institutions have come up with various strategies which include the use of the non-traditional methods such as the group lending and other practices which are not being used by the banking sector for enterprise development in the rural areas (The Mix,2010). Microfinance is a widespread concept across the world and through its various services the lives of the poor population have been uplifted
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