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Microfinance in marginal and upland areas

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  • Seibel, Hans Dieter

Abstract

Microfinance comprises microsavings, microcredit and other financial services such as microinsurance and microleasing. Small amounts of savings are col-lected: daily, weekly, at market days, after harvests or irregularly. They are then transformed into microloans which are repaid in microinstalments: this is micro-credit. I call any institution that provides such microfinancial services a microfi-nance institution. This includes financial self-help groups, savings and credit co-operatives, rural banks, branches of Agricultural Development Banks and some commercial banks, furthermore moneylenders, deposit collectors, credit NGOs and rotating savings and credit associations. A small number of them is donor-supported. Sustainable rural financial institutions are a prerequisite of sustain-able rural development in any country and any region.

Suggested Citation

  • Seibel, Hans Dieter, 1999. "Microfinance in marginal and upland areas," Working Papers 1999,11, University of Cologne, Development Research Center.
  • Handle: RePEc:zbw:uocaef:199911
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