Microfinance

[bainbrig]

Microfinance - should I listen to the criticisms of microfinance which seem to centre around the argument that the lenders charge too high an interest rate and the recipients receive no real benefit? Or should I ignore the moaners and carry on helping to fund (in my case) Lend With Care?

Every decent charity seems to spawn any number of critics who know why we shouldn’t give.

[Old_Geezer]

Not heard of Lend with Care. Are their rates exorbitant too ?

[Canary42]

Your personal choice really. Microfinance interest may be high, but at least it's finance which would probably be unavailable anywhere else.

[Old_Geezer]

It looks like some MFIs charge more than others. Select with care.

[Jackdaw33]

Never heard of the term 'microfinance'. What does it mean?

[Mamyalynne]

Neither had I Jack

//Image result for microfinanceen.wikipedia.org
Microfinance is a term used to describe financial services, such as loans, savings, insurance and fund transfers to entrepreneurs, small businesses and individuals who lack access to traditional banking services.//

[Jackdaw33]

So would pay day loans come under this heading?

[jno]

I guess you have to do your sums, as with any other finance deal. Borrowers get access to finance they wouldn't normally get, and they pay for the privilege, but whether it's worth it is something only they can assess. And how well they do their sums may affect whether they receive real benefit or not.

Tough one, no real right answer.

[bainbrig]

Came to prominence in the 70s in Bangladesh. The Grameen (village) bank lent tiny sums (a dollar or two) to poor women to help their very small businesses survive, repaid at equally very small amounts.

The Grameen Bank grew huge and stopped taking deposits quite a few years ago. LendWithCare does a similar job, lending hundreds, occasionally thousands, of pounds, to what they term ‘entrepreneurs’ in poorer countries. They charge interest, but say it is at low local levels.

I have put a lot of money into Lend over the years, every penny of which has been repaid, on time.

[woofgang]

so if you are happy with what you do and the outcome, why are you asking on here about criticism?

[bainbrig]

Because, dear woofgang, although I am fairly confident of myself and my life, I do question my actions. Doesn't everyone? So when I saw an article knocking the concept of microfinance, it set me to wondering about it.

[woofgang]

Actually my dear Bainbrig, no I don't....if there is a massive "Charity boss nicks millions" story then I take notice but if its other people's opinions then once I have done my due diligence it tends to be the end of the matter.

[bainbrig]

Well, if ever I stop subjecting myself to the same rigours of criticism that I would everyone else, that’s the day to nail me down.

Are you REALLY that confident that you’re right?

[woofgang]

Once I have done my research then yes. Of course I do deeper research for more important things and less research for the small stuff. I am all for consider the options, make the decision, take the ac tion and move on.

[bainbrig]

Blimey.

[woofgang]

isn't that wahat most people do?

[bainbrig]

Maybe so. I’ve been (mildly) successful in many ways, but there are few things I’m 100% certain of anymore, not even politics. I question my beliefs, my motives, my intentions - sometimes this self-questioning leads me back to where I started, but certainly not always.

You need totally certain people sometimes (Churchill in 1939 for example) but I’d argue that Churchill wasn’t a great peacetime leader because he WAS too certain of his position. There are times when you need a Mandela instead.