The role of informal microfinance institutions in saving

The following are some of the constraints encountered by women in accessing financial
services:-
(i) FINANCIALLY:
� Low income as a result of lack of an economic base for business operations.
� Insolvency of women and lack of security.
(ii) ENVIRONMENTAL AND GENDER RELATIONS:
� Tradition and religion (customers)
� Lack of support from their male counterparts.
� Availability constraints related to the many tasks assumed by women.
� Loan service often in the hands of men.
� Few formal or informal sources of financing and disregard for joint guarantees.
� Concentration of financial institutions in major urban centers and remoteness of
these services.
(iii) TECHNICALLY
� Ignorance of the mechanism of the banking system.
� Unfavorable access conditions for women (non-existence of specific credit
policies).
� Failure to master profit making activities and lack of training or project follow-
up.
(iv) TRAINING AND ORGANISATION:
� Illiteracy and lack of training in general.
� Inadequate information and awareness, lack of solid and reliable organization.
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