Providing affordable access to credit
Description
Providing affordable access to credit involves implementing mechanisms that enable individuals and small enterprises, especially those underserved by traditional financial institutions, to obtain loans and financial services at reasonable costs. This strategy addresses barriers such as high interest rates, lack of collateral, and complex application processes by promoting microfinance, credit cooperatives, and digital lending platforms, thereby empowering economic participation, reducing poverty, and fostering local development through practical, inclusive financial solutions.
Implementation
The Linkage Banking programme is being implemented by The African Rural and Agricultural Credit Association (AFRACA) in Zimbabwe, Nigeria, Burkina Faso, Uganda and Cameroon. The main objectives of the programme are: 1) To facilitate and mobilise savings by self-help-groups so that they can generate their own part collateral and loan guarantees; 2) Provide delivery channels to groups; 3) Recycle locally generated funds to the areas from where they derive; 4) Provide a framework for a permanent business relationship between the groups and the banks; 5) To minimise transaction costs between the banks and the groups.
Broader
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Related
Value
Metadata
Database
Global strategies
Type
(D) Detailed strategies
Subject
- Commerce » Credit
Content quality
Yet to rate
Language
English
1A4N
J5792
DOCID
12057920
D7NID
195896
Editing link
Official link
Last update
Dec 3, 2024