It is generally difficult for the poor to get access to credit by conventional means because banks commonly require the security of collateral loans. Micro-finance and micro-insurance schemes are innovative ways of providing the poor with access to capital and thus a way out of poverty. Especially women often lack access to the financial resources necessary to escape poverty and social dependency. Micro-credit schemes can enable women to engage in economic activities and join social networks through which both poverty and social dependency can be overcome.
Dear all once again,
It has been observed that some commercial banks have failed to establish in rural settings and have hampered the flow of the customers due to the establishment of more microcredit finance institutions.
Is it difficult for the poor to completely lack access to credit?
what do you think?
I wrote this information before the hiking of the prices in Uganda came into effect poor people stormed the city as the cost of living has become more difficult.
Send your comments!