Posted on November 25, 2008 - by lincolnw

Overhead Cost, Makor Challenge of Microfinance Banks

Whatever has an  advantage  also has its  disadvantage. This is a well known fact that has been established time-and-time, over-and-over again. The objective of establishing microfinance in Nigeria, which aims to help alleviate poverty through empowering the people by increasing their access to factors of production, especially credit, cannot be underestimated.
Microfinance is about providing financial services to the economically active population of the country who are traditionally not served by the conventional financial institutions.
Giving loans to small scale business operators who are spread out in different locations of the Nigerian environment may not exactly be a problem.
What however seems to be a predicament is the ability of these microfinance banks to monitor their customers in order to recoup their money…{click this link to read the rest of the article}