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Community-managed loan funds: which ones work?
Jessica Murray | Richard Rosenberg
In remote rural areas, usually the only form of viable microfinance is some form of community-managed loan fund (CMLF). Professionally managed MFIs usually provide more secure, well-managed services, but their higher running costs prevent them from operating in many rural areas whereCMLFs can succeed. This article, drawing on a review of the performance of many CMLF projects established by donors and NGOs, finds that their success or failure is linked to the source of their funds, and also to the quality of external support they receive. It finds that most CMLFs that
rely on external funding from the start fail. The article concludes with implications for development agencies that support CMLFs.
In remote rural areas, usually the only form of viable microfinance is some form of community-managed loan fund (CMLF). Professionally managed MFIs usually provide more secure, well-managed services, but their higher running costs prevent them from operating in many rural areas where
CMLFs can succeed. This article, drawing on a review of the performance of many CMLF projects established by donors and NGOs, finds that their success or failure is linked to the source of their funds, and also to the quality of external support they receive. It finds that most CMLFs that
rely on external funding from the start fail. The article concludes with implications for development agencies that support CMLFs.
CMLFs can succeed. This article, drawing on a review of the performance of many CMLF projects established by donors and NGOs, finds that their success or failure is linked to the source of their funds, and also to the quality of external support they receive. It finds that most CMLFs that
rely on external funding from the start fail. The article concludes with implications for development agencies that support CMLFs.
Role of Microfinance in Sustainable Development in Rural Bangladesh
Mazumder, Mohummed Shofi Ullah
Sustainable Development, Vol. 23 (2015), Iss. 6 P.396
https://doi.org/10.1002/sd.1599 [Citations: 14]Innovations in savings and credit groups: evidence from Kenya
Roy Mersland, Roy Mersland
Food Chain, Vol. 18 (2007), Iss. 1 P.50
https://doi.org/10.3362/0957-1329.2007.007 [Citations: 1]Housing Finance in Emerging Markets
Housing Finance and Financial Inclusion
Porteous, David
2011
https://doi.org/10.1007/978-3-540-77857-8_2 [Citations: 1]Tabs navigation
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