Micro Finance(Self Group)
Micro Finance
Table Setting

About MicroFinance

Microfinancing organizations or self groups typically comprises of a group of people having homogeneous social and economic backgrounds, all voluntarily coming together to save regular small sums of money, mutually agreeing to contribute to a common fund and to meet their emergency needs on the basis of mutual help. They pool their resources to become financially stable, taking loans from the money collected by that group and by making everybody in that group self-employed.The group members use collective wisdom and peer pressure to ensure proper end-use of credit and timely repayment. This system eliminates the need for collateral and is closely related to that of solidarity lending, widely used by microfinance institutions. Microfinancing organizations may exist separately or as part of larger organizations. They may operate informally or according to a format or program. The groups usually meet locally, in member’s homes or in community rooms in schools, churches, or other centers.


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