Microfinance Methodologies.

Today, I have read the different methodologies in microfinance. And I found the diagram on this site depicted in the Russian Microfinance Project Report and adopted from the care of " CARE savings and CREDIT sourcebook" to be very helpful my blogging project about microfinance. According to the site that, group lending in microfinance is broken-down into two major categories such as : Solidarity Groups (SG) and Community Based Organizations (CBO).  

Solidarity Groups

The solidarity group model became very famous in 1976 after it was adapted by Dr. Muhammad Yunus as a Grameen Bank Methodology. Later on this methodology was expanded to Latin America but with some adjustments. In Latin America solidarity model chose to retain loan approval and administration.

Philippines is one of the country adapted the Grameen Method. MFI's Operation in the Philippines is considered a center-based formation with a minimum of 25 members which is divided into groups with a maximum member of 5 and minimum of 3 person. The center has a center chief as an officer in-charge in the center and there's a group leader on each group.

Community Based Organizations

CBO is differ from solidarity group in that they assume eventual graduation of their borrowers from the lending institution. Therefore, the primary function of the CBO's is to develop the internal financial management capacity of the group in order to create a Rural Bank, independent of the lending institution owned and manage by the poor.

 

What is microfinancing in Philippines?

Microfinancing It is a form of financial services for entrepreneurs and small business lacking access to banking and related services such as loans, savings, insurance, and training to people living in poverty.

Micro Establishments providing services to people which is living in hard to reached area and they help people to develop and strengthen information for socio-economic of their lives. And some of the microfinancing are touching lives of poor, they conduct skills training for their clients.

We are focusing MFI's in Philippines because the Philippines is a country of tremendous diversity of languages, religions and cultures. And thirty percent (30%) of its 95 million people live in dire poverty. While the country has made a great strides in development, 60% of the population still employed in the informal economy, running small business not recognized by the government and eking out living day to day.




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Launching MFI Page

Guys, we are starting to do a good thing in our MFI page. You can view it right now and hopefully you'll like it. And were not in the end, we are not going to stop right there this just the beginning.

MFI page is the place you can find ideas, tips and tools for your business goal. We are discussing there about Microfinance or Microfinancing. If you're having fan with financial terms and institutions. We try to help you here. You can ask with us about strategies and everything that we have idea about the fact in the field of Microfinancing.

 If you have some suggestions and comments please feel free to post it in our home page.

What is the Life or Our Business Mana.

Our Business Mana in English is a power of authority in our daily business. Everybody has their own business over around in earth.

OBM wants to share our fields, expertise, based on our experience. OBM is currently working on a field of Micro Finance Establishments in the Philippines with more than five (5) years experience. We're dealing of quality services, inquiries and other benefits to our clients  everyday. Our Business Power is always risking life, integrity and goods. This is our engagement today.

 ' Our; we, us, he or she, me, and you.

 ' Business; is an activity that someone is engaged in.

 ' Mana; is defined in English as authority, control, influence, prestige or power. It is also honour.

Let me Ask you Question.

              You, what is your business today? Are you doing a good thing? Are you following the right path? Have you already realize that today is not the end else this is the beginning.