Microfinance for Women

What is microfinance?

Microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services. Microfinance is also the idea that low-income individuals are capable of lifting themselves out of poverty if given access to financial services.

Microfinance impact and outcomes

Microfinance helps very poor households meet basic needs and protect against risks; The use of financial services by low-income households is associated with improvements in household economic welfare and enterprise stability or growth; By supporting women's economic participation, microfinance helps to empower women, thus promoting gender-equity and improving household well-being; For almost all significant impacts, the magnitude of impact is positively related to the length of time that clients have been in the program.

Access to credit allows poor people to take advantage of economic opportunities. While increased earnings are by no means automatic, clients have overwhelmingly demonstrated that reliable sources of credit provide a fundamental basis for planning and expanding business activities.

Microfinance: a good tool for empowering women

Microfinance programs have generally targeted poor women. By providing access to financial services only through women-making women responsible for loans, ensuring repayment through women, maintaining savings accounts for women, providing insurance coverage through women-microfinance programs send a strong message to households as well as to communities.

Access to financial services has improved the status of women within the family and the community. Women have become more assertive and confident. In regions where women's mobility is strictly regulated, women have become more visible and are better able to negotiate the public sphere. Women own assets, including land and housing, and play a stronger role in decision making. In some programs that have been active over many years, there are even reports of declining levels of violence against women.

Loan Process

Loan Process

Micro Finance Chart

Micro Finance Chart

Note: Figures shown above are for descriptive purpose only for more details please contact us»

Target Clients

Microfinance clients are often described according to their poverty level-vulnerable non-poor, poor, very poor. At PDMF, the women make up 100% of clients. These clients operate small businesses, work on small farms, work for themselves or for others in a variety of businesses-fishing, carpentry, vegetable selling, small shops, transportation, and much more. Some of these microfinance clients are truly entrepreneurs - they enjoy creating and running their own businesses. Others become entrepreneurs by necessity when there are few jobs available in the formal sector.

Lending Metdology

PDMF works on adapted Grameen model suiting the local context. The Grameen model emerged from the poor-focussed grassroots institution, Grameen Bank, started by Prof. Mohammed Yunus in Bangladesh. A branch is set up with a Branch Manager and 4-5 Relationship Officers, initially covering an area of about 15 to 22 villages. The employees start by visiting villages to familiarise themselves with the local milieu in which they will be operating and identify prospective clientele, as well as explain the purpose, functions, and mode of operation of the bank to the local population. Groups of five prospective borrowers are formed and 3-6 such groups form a centre. CGT is provided for 4 days and then the Branch Manager does GRT for the group/ centre. The Loan disbursement is done at the branch premises. Typically it takes 14 days from CGT day 1 to loan disbursement. The loan is repaid in weekly/ fortnightly/ monthly meetings conducted at the centre.

To open PDMF Branch or Having Micro Credit (Loan) contact us»