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Microfinance Resources
Cooperative Constitution
Posted by: Michael Hromadka
Date Added: July 11, 2012
The cooperative constitution is the central document of microcredit lending. Microcredit lenders rely on clients personally guaranteeing each other's loans as their only form of collateral. When all of the clients have read and agreed to the terms of the cooperative contract, they execute it. The execution formalizes the legal document and the client's promise to repay the loan and pay for any members who might default. The cooperative constitution also contains sections dedicated to group-generated bylaws and lender's rights.
Progress Out of Poverty Index (PPI)
Posted by: Michael Hromadka
Date Added: July 10, 2012
The Progress out of Poverty Index (PPI) is a country-specific survey that seeks to measure the economic status of a potential microcredit loan credit. Developed by the Grameen Bank as a way to quantitatively separate economic classes, the survey awards more points, and thus a higher score, to potential clients from higher economic classes. Therefore, the poorest potential clients will have a score closest to zero. This Ghana PPI is used by Lumana to target low-scoring potential clients, since one of Lumana's core beliefs is that the people at the lowest rungs of the socio-economic ladder have the least access to formal financial products and should accordingly be served before wealthier people. MFIs can modify the PPI questions and scoring rubric to create their own survey applicable to their mission and context.
Microcredit Success Story - Client Florence Ankrah - A Portrait of Microcredit Success
Posted by: Michael Hromadka
Date Added: July 06, 2012
A narrative of a client who successfully used her access to microcredit to build up her business. Template can be used for marketing, fundraising or blog purposes for any MFI.
Malicious Microfinance - The Dark Side of MFIs
Posted by: Michael Hromadka
Date Added: May 27, 2012
An introduction to the major ways microfinance can hurt clients. Topics include lack of personal finance classes, poor savings account services and for-profit MFIs.
Microfinance For Your Average Joe - An Introduction to Microfinance
Posted by: Michael Hromadka
Date Added: April 24, 2012
This document serves to introduce volunteers who are interested in microfinance to the basic principles and terminology of microfinance. An example of microfinance in action is used to show the impact financial services can have on the local economy from both a micro and macro perspective.