Microfinance is a type of financial service which offers various other types of services from loans and savings to the entrepreneurs, small business and poor people, who wouldn’t generally qualify for a standard requirement of the banks to get a loan from any microfinance institutions Uganda. This microfinance is provided by various institutions in developing countries, where there is a high demand for such loan, such as microfinance institutions Uganda. This article will take a look at more about microfinance and the institutions that provides microfinance loans to those who need it.
Why microfinance from the institutions in Uganda?
- Microfinance loans from any microfinance institutions Uganda have got various advantages for those who need it, such as entrepreneurs, small business owners and also those who are poor and looking to get finance to get established.
- The loans from the microfinance from the microfinance institution Uganda can be used in various ways by the person to get established, such as purchasing tools to start construction work, to purchase beauty products to become a beautician etc. Women make up two third as a client of the microfinance loan from the microfinance institutions Uganda.
Many financial institutions offer various types of microfinance loans. These institutions are small sized nonprofit organizations that offer the loans. However, the interest rate at the institutions can be higher than the bank, which will allow these institutions to run their business. The interest rates of these microfinance institutions Uganda can vary from one institution to another. This is why one should make sure to check the institutions before opting for the loans.
The concept of microfinance, which is followed by the microfinance institutions, including the microfinance institutions Uganda was first initiated by Muhammad Yunus, a Bangladeshi, in the 70’s and 80’s, who modeled the first modern version of this financial service and offer loans to the poor people of the villages, so that they are able to get established. All financial institutions that offer microfinance follow the same concept.
One may wonder how such institutions works. These institutions will offer loans to those who are residing in the rural areas and want to get established. Financial institutions such as banks are not able to reach to these areas as these people will not be able to full fill the standard requirements of the banks. One can visit various websites, such as aboutuganda.com, which will offer information about these microfinance institutions Uganda that one can approach to get the microfinance loans.
Some of these microfinance institutions Uganda that one can approach are:
- Uganda Co-operative savings and credit union
- Pride microfinance (U) limited
- Astor finance PLC limited
- Micro Uganda limited etc.
Advantage of microfinance from microfinance institutes:
One can get benefitted by various advantages of getting the microfinance loans from the microfinance institutions Uganda. They offer loans with a more relaxed approach than the traditional banks. Most of the small sized businesses and entrepreneurs will not be able to get the loans from the conventional banks but they will be easily eligible through such institution without any hassle. This is why one should first check out the website of the institution and one can also visit the office of the institution.