The role of informal microfinance institutions in saving

• Having adequate and timely secretarial assistance including computer facilities which
will minimize unnecessary delays in the completion of data collection.
1.1.23: Definitions of key concepts;
Microfinance: - Is the provision of a broad range of financial services such as deposits,
loans, and payment services, Money transfer and insurance to poor and low-income
households and, their micro enterprises.
Semiformal sector: - are those sectors which are registered, but are not subjected to specific
banking regulations and central banking supervision.
Decentralized financial system: - This is a system of institutions and network that were
developed as an alternative to commercial banks and the informal structure for offering
financial services close to the people.
Financial institution: - a business entity formed to maintain checking and
Saving accounts, issue loans, and provide credit business.
Formal banks: - are those banking institutions offering financial services that fall under the
supervisory and regulatory jurisdiction of the bank of Tanzania.
An Entrepreneur: - Is someone who undertakes the risk of new enterprise and a person
who seeks the best opportunities for using resources for their highest commercial yields
(provide added value to the society.)
Micro enterprises: - These are small enterprises that provide financial services in rural and
urban areas enabling those people having low income to participate in the development
process and enhance their quality of life through promoting employment and income
generating opportunities.
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