Financial literacy is considered as one of the main tools to prevent over-indebtedness that has plagued many microfinance borrowers. A consistent and effective financial literacy program will ensure that borrowers receiving loan funds will use them for its intended purpose and will not divert it for non-productive purposes. One main concern however is the perception…
Social Performance Management (SPM) is a management tool used to translate the mission statement of microfinance institutions into reality and be able to keep track on how they perform in line with the internationally and socially accepted indicators. This will ensure that MFIs will continue to serve the poor, despite the issue of commercialization and…
Microfinance institutions providing financial intermediation functions can be used as conduits of money laundering and terrorism financing. With MFIs, it is even harder to track down since transfer of money in small amounts through a non-profit “charitable” institutions may not be monitored effectively. Deterring people with motives to use MFIs as a channel of their…
