Microfinance Development Programs

Microfinance is at an inflection point. In just 15 minutes, Vijay Mahajan – widely regarded as the father of microfinance in India – lays out a bold new path forward: - A shift from rigid EMI-based loans to cash-flow-linked, flexible finance and micro-equity. - A new class of financial products designed to truly serve micro-enterprises - and scale sustainably. Watch this video if you are in microfinance, MSME lending, fintech, financial institution, policy, government, or impact investment. This isn’t just a conversation - it’s a strategic blueprint for the sector’s next chapter. Key insights from the video: - ₹6 trillion disbursed to 6.5 crore borrowers—but the surge in NPAs is now a loud signal that one rigid loan product can no longer meet the evolving needs of the sector - Fixed EMI loans are choking the growing micro-businesses - Entrepreneurs need patient capital—especially in startup, growth, and shock recovery phases - A new product: repayment as a fixed % of cash flows—automatically pausing in lean months - Digital rails (UPI, GST, etc.) now make cash flow tracking feasible - A 3-year pilot yielded a consistent 12% net IRR—proof this can scale - A call to action: RBI, MFIs, NBFCs & Banks must pilot this model The 15-page policy paper that expands this vision is linked in the first comment. If you care about reimagining microfinance and unlocking MSME growth, start here. Watch now. Let’s rebuild better. #flexiblefinance #microequity #patientcapital #MSME #microfinance #financialinclusion #vijaymahajan #policyinnovation #impactinvesting #digitouch #gamechanger #innovation

A dedicated bank for microcredit in Bangladesh—this is a bold and visionary step by the Chief Advisory Professor Muhammad Yunus. His plan to establish a specialized microcredit bank acknowledges what we’ve long known: when you invest in women, you invest in long-term prosperity for communities and economies. This is also a perfect 'graduation' scheme that the current microfinance organizations need. But, we can go even further with this. Imagine if we provided capital to these women and recognized and quantified their impact on families, climate resilience, and inclusive growth. That’s what we do at IIX through our IIX Values™ system, capturing real-time data directly from women at the last mile and linking it to capital markets. This data isn’t just about impact—it’s a risk mitigant. It can form the basis of innovative financial structures like the Orange Guarantee Facility, which IIX is currently creating in Australia. A similar facility in Bangladesh could work with banks to de-risk lending to women and small businesses, channeling more capital to where it creates the most sustainable value. This is how we move from intention to systemic change—from microcredit to macro-impact. #OrangeMovement #WomenLedFinance #IIXValues #ImpactInvesting #Bangladesh #ProfYunus #InclusiveFinance #GenderLensInvesting #Microfinance #FinancialInnovation Chief Adviser of the Government of Bangladesh | Lutfey Siddiqi | Dhaka Tribune | IFC - International Finance Corporation https://lnkd.in/gD5CCcpa

External shocks and import-reliant food supply are driving inflation to soar across the African continent, but it doesn’t have to continue that way. The 44 million small and medium-sized enterprises (SMEs) operating across sub-Saharan Africa are the backbone of the agricultural sector and key to unlocking the continent's immense economic potential. Yet, their growth is continually stifled by significant financing gaps, further exacerbated by financial products that cannot meet the unique needs of agricultural SMEs. Without access to financing, these SMEs cannot innovate, expand, and contribute to Africa's high need to create employment opportunities, trade and food security. Together with my colleague Kebba Colley, we have written a piece outlining how IDH and partners, with support from the Mastercard Foundation, are working together in Ghana to bridge these gaps and develop economically sustainable grain supply chains by helping agricultural SMEs become more investment-ready. Since its start in 2019, the Grains for Growth program has mobilised $23.6 million in financing, including direct investments and loans, by helping SMEs improve their market access, build partnerships with reputable buyers, and enhance product quality. A similar approach is being applied in several other African countries, where we are working with SMEs to transform their investment proposition from risk into opportunity. This challenge, however, goes beyond financial readiness; we need an integrated approach. Commercial banks, local financial institutions, microfinance organisations, and impact investors must collaborate with the agricultural industry to develop solutions tailored to the realities of SMEs. Through courageous partnerships with the finance sector, we can strengthen African SMEs to build resilient domestic food systems that deliver economic growth and food and supply security on the continent for future generations. I invite you to read more about this work in the blog here: https://lnkd.in/e9bKzFJX *This article was originally published in The Sunday Times, 2025. #SustainableInvestment #AccessToFinance #smallholder #finance IDH

Microloans typically are not accessible to the most vulnerable people. World Food Programme's SheCan changes that - and has just launched in Iraq! 🚀 🚀 Through collaboration with Micro-Finance Institutions (MFIs), SheCan Iraq offers accessible and affordable loans, ensuring that those previously excluded from formal finance can now access formal finance to grow and diversify their business activities for the first time. And it uses digital wallets to extend financial services to remote populations. If you want to know more, read the latest blog (link in comment) #financialinclusion #Iraq #innovation WFP Innovation Accelerator

Study morning around ReFi and how improve impact 🔥💥📚 Blockchain Uses for Microfinance Institutions in the Water and Sanitation Sector: Pilot Study Decades ago, the legendary #science fiction writer, William Gibson, noted, “The future is already here – it’s just not evenly distributed yet.” With any technology advancement, there will be experts who develop a deep understanding of the technology’s functionality and #capabilities. It takes partnership among these experts and the leaders in different industries to maximize the potential of applying new innovations to solve the toughest #challenges. This pilot study brings blockchain experts together with organizations both supporting and directly administering #microfinance loans for people seeking access to clean #water and improved sanitation. This study will test the hypothesis that blockchain technology has the potential to improve the efficiency of the existing microfinance model and promote financial inclusion of #unbanked individuals. Therefore, one goal of this study is to contribute to an increased understanding of blockchain technology to Microfinance Institutions (MFIs) and key stakeholders in the microfinance sector. Another is to explore the feasibility of implementing blockchain technology into water and sanitation microfinance programs. A third goal is to illustrate how #transparency, data democracy, and digitizing data capture and processes can strengthen and improve the existing microfinance model. This third goal occurs by protecting the rights and privacy of individuals, creating value for borrowers beyond the duration of a loan, showing the potential to decrease operational costs for MFIs, and securing impact data for donor organizations that support microfinance programs. Beyond resulting in the writing of this paper, deploying a pilot provided real-world data and stakeholder feedback. Instead of #conversations being limited to theoretical strategies, on-the- ground loan assessors and loan officers from the selected MFIs provided unique insights about solution design and configuration to meet their needs and challenges. Once the blockchain platform was deployed, those stakeholders registered prospective borrowers on the platform with necessary inputs and executed loan approvals or denials within the solution, and actual borrowers received loan communications secured with blockchain technology. Alfredo Muñoz García Javier Molina Jordà Joaquim Matinero Tor José Luis Casal Lars Seier Christensen Joan de Ramón Brunet Fujitsu

According to a report by Reserve Bank Innovation Hub (RBIH), only 3% women entrepreneurs in tier 2-3 cities have access to external funding. To solve this problem, various microfinance institutions are offering small, easily serviceable, and collateral-free loans to women in these cities. Why is microfinance so powerful in these areas? 🤝 𝐁𝐫𝐢𝐧𝐠𝐢𝐧𝐠 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐭𝐨 𝐭𝐡𝐞 𝐃𝐨𝐨𝐫𝐬𝐭𝐞𝐩 Microfinance reaches women who can't easily access traditional banks. It's like having a mini-bank in your neighborhood, making loans available to those who need them most. 🤝 𝐓𝐮𝐫𝐧𝐢𝐧𝐠 𝐃𝐫𝐞𝐚𝐦𝐬 𝐢𝐧𝐭𝐨 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 With small loans, women can start their own ventures. Whether it's selling handmade crafts or opening a local shop, microfinance provides the initial money to get started. 🤝 𝐁𝐫𝐞𝐚𝐤𝐢𝐧𝐠 𝐅𝐫𝐞𝐞 𝐟𝐫𝐨𝐦 𝐃𝐞𝐛𝐭 𝐓𝐫𝐚𝐩𝐬 Many women in smaller cities rely on local money lenders who charge very high interest rates. Microfinance offers a way out of this cycle with better loan terms, helping women escape long-term debt. 🤝 𝐂𝐫𝐞𝐚𝐭𝐢𝐧𝐠 𝐚 𝐑𝐢𝐩𝐩𝐥𝐞 𝐨𝐟 𝐏𝐫𝐨𝐠𝐫𝐞𝐬𝐬 When a woman improves her financial situation, it benefits her whole family. Children get better education, families eat healthier, and the entire community sees positive changes. ........ But microfinancing isn’t as easy as it sounds – challenges like over-indebtedness, limited reach of microfinance & cultural barriers still persist. Despite these, the overall impact is undeniably positive. That’s why we at Dhanvesttor aim to expand our services to include microfinance, thereby furthering our mission to empower women economically. What's your take on microfinance's role in women's empowerment? Share your thoughts below! 👇 #womenentrepreneurs #financialinclusion #microfinance #empoweringwomen #inclusive