The supply of microfinance could be done through three various modes i.e., the Informal mode (moneylenders and traders), Semi-formal mode (village banks, NGOs, MFIs, Cooperatives, credit unions, input suppliers, agribusiness companies, marketing companies) and Formal mode (agricultural state banks, commercial banks, community and rural banks, postal banks, etc).
Institutions that wish to take advantage of the opportunities in microfinance should carefully evaluate the various considerations, specifically their own vision, mission and objectives, the potential market size, competition from other formal/informal MF agencies, the regulatory environment, and the availability of infrastructure and systems. This article provides details of various delivery models and their risk levels.There are a number of delivery models, followed by Microfinance Institutions (MFI) all over the world, in dispersing credit and other related products to the clientele.
The supply of microfinance could be done through three various modes i.e., the Informal mode (moneylenders and traders), Semi-formal mode (village banks, NGOs, MFIs, Cooperatives, credit unions, input suppliers, agribusiness companies, marketing companies) and Formal mode (agricultural state banks, commercial banks, community and rural banks, postal banks, etc).
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