What is Microfinance?
Microfinance is a type of financial services provided to entrepreneurs and small businesses that have difficulty accessing banking and related services. There are two main ways for providing financial services to members:
(1) The relationship-based banking model provided for individual entrepreneurs and small businesses, and
(2) The group-based model that brings together entrepreneurs who are in need of microcredits and other services as a group.
Since the group-based microcredit model creates a spirit of responsibility and solidarity among 5 micro-entrepreneurs, TGMP has adopted the group-based microcredit model used by Grameen Bank. The installments of micro-entrepreneurs who do not make their microcredit repayments on time are paid by the other micro-entrepreneurs in the group.
TGMP views microfinance as a way to provide financial services to financially challenged individuals who do not have access to these services. Microfinance is an empowering experience to provide opportunities for those who are in need of financial services and make their dreams come true.
If you want to learn more about the microfinance model, contact us for more details.