Today's financial institutions have provided financial
services such as savings, mortgages, consumer credit, insurance, loans to
finance business expansion and transfer uang.Dengan the impact of globalization
of financial institutions continue to innovate coupled with the rapid
development of technology to fulfill their client or consumer demand.
This condition has been going on in the industry, where the
transfer of money across continents instead of an advanced problem again and
all forms of insurance has been offered as to whether the condition ni
pasar.Namun will also take place in developing countries? And whether
low-income people will also enjoy the facilities of existing industry in the
country?. Here microfinance institutions began to take its own role in
addressing the situation has moved tersebut.LKM help the middle class in terms
of finance such as credit, savings and loans and other facilities which are
being applied to the country's industry.Untuk together let us discuss products
offered by microfinance institutions.
A. LOANS
The success of many MFIs can be indetified in their ability to combine
successful practices from informal sector (moneylenders) into formal
institutions. The extraordinary success of microcredit comes from its
ability to replicate some of these features from moneylenders into more
“formal” financial institutions lowering the interest rates applied.
These interest rates still remain much higher compared to traditional
banking loans due to the higher administrative costs of managing many
small loans instead of fewer with large amounts.
The specific features that microfinance instutions should implement to deliver valuable service for their clients are listed below.
1. Fast access
Rapid loan approval and fast disbursement is crucial for clients and it is often the main reason why many people deal with moneylenders even at very high interest rates.
2. Clear, easy, and flexible conditions
It is important to provide the credit service at convenient conditions for the clients. Transaction costs, which include transcactions costs (to pay the instalments or get the money) or time away of work, throughtout the life of the loan must kept low. Loans should also not be strictly linked to a specific purpose.
3. Permanent services
Credit services must be provided on an ongoing basist, not only for a limited period of time, the lack of this requirement is the main shortfall of many project that despite their effectiveness do not have the goal of delivering financial services an ongoing and sustainable basis.
4. Altenative collaterals and collateral substitutes
Poor people often lack traditional collateral. To vercome this obstacle many MFIs use other kinds of collateral known as collateral substitutes and alternative collaterals.
The specific features that microfinance instutions should implement to deliver valuable service for their clients are listed below.
1. Fast access
Rapid loan approval and fast disbursement is crucial for clients and it is often the main reason why many people deal with moneylenders even at very high interest rates.
2. Clear, easy, and flexible conditions
It is important to provide the credit service at convenient conditions for the clients. Transaction costs, which include transcactions costs (to pay the instalments or get the money) or time away of work, throughtout the life of the loan must kept low. Loans should also not be strictly linked to a specific purpose.
3. Permanent services
Credit services must be provided on an ongoing basist, not only for a limited period of time, the lack of this requirement is the main shortfall of many project that despite their effectiveness do not have the goal of delivering financial services an ongoing and sustainable basis.
4. Altenative collaterals and collateral substitutes
Poor people often lack traditional collateral. To vercome this obstacle many MFIs use other kinds of collateral known as collateral substitutes and alternative collaterals.
B. SAVINGS
MFIs typically offer two types of savings accounts: voluntary and
forced. Voluntary savings replicate the savings services provided by
traditional commercial banks while forced savings serve as collateral
for the loan. These accounts do not necessarily provide a return on
deposit and are kept by the institution until the balance of the loan
has been paid off.
Liquid accounts are flexible saving products often with no or small minimum balance but they usually do not provide or pay very little interests. Time deposit accounts, on the other hand, usually offer higher interest rate but clients have to leave their money in the account for a specified period of time.
Liquid accounts are flexible saving products often with no or small minimum balance but they usually do not provide or pay very little interests. Time deposit accounts, on the other hand, usually offer higher interest rate but clients have to leave their money in the account for a specified period of time.
C. MICROINSURANCE
Low-income entrepreneurs, just like everyone else, are
vulnerable to risks, such deseas, injury, theft, death, accidents and
floods.
This is why financial products to reduce the impact of such
risks is a valuable financial service mereka.Asuransi some MFIs began to
increase their portfolios in response to this need of protection.
Providing savings and
credit insurance services in addition to making financial services a complete
MFI microfinance institutions provide.
Ie the full set of financial services to provide direct
income people rendah.Untuk LKM requires a special license and insurance
requirements for such a license granted by the government is usually very
tight.
Control of insurance companies for the same reason why they
control the financial health of deposit taking institutions, protection of
client and system stability. As the majority of MFIs do not meet these
conditions, there is an alternative to direct provision of insurance and the
most common is an existing partnership with insurance companies. Insurance
companies may not offer their products directly to poor people because they do
not have experience in the market segments: MFI can fill this gap and worked as
an intermediary between insurance companies and klien.Asuransi product for the
target group of microfinance institutions must be designed according to
specific needs and protect their specific risks: they may include health
insurance, livestock insurance and crop insurance. In the MFI offers some insurance
but as they start to enter the industry is growing among the set of products
offered.
D. MONEY TRANSFER
Money transfer service is another critical financial service: the business of remittances, i.e. the money that emigrants send home to relatives, is growing strongly and is often managed by informal arrangements with high charges and high risks. Depending on the local regulation and costs this service can be delivered directly or in partnership with money transfer companies. MFIs owns the competitive advantage of the relationship with their clients and such service can also be linked to other products or can be taken into account when calculating the repayment capacity of each client. There is the possibility to link remittances with credit products when remittances are not used for consumption but for production purposes, combining the different sources of funds.
A study by Manuel Orozco showed that in 2002 the average fee to send between US$150 and US$300 from the United States to Central America was on average 7.35 percent the value of the amount sent, to which must be added average additional costs of about 2.3 percent. The total average percentage paid on a transaction of US$150 was about 18 percent. These high charges are primarily due to a low competition in the market and this is why MFIs started to provide, together with the other traditional financial products, this valuable service for their clients.
Money transfer service is another critical financial service: the business of remittances, i.e. the money that emigrants send home to relatives, is growing strongly and is often managed by informal arrangements with high charges and high risks. Depending on the local regulation and costs this service can be delivered directly or in partnership with money transfer companies. MFIs owns the competitive advantage of the relationship with their clients and such service can also be linked to other products or can be taken into account when calculating the repayment capacity of each client. There is the possibility to link remittances with credit products when remittances are not used for consumption but for production purposes, combining the different sources of funds.
A study by Manuel Orozco showed that in 2002 the average fee to send between US$150 and US$300 from the United States to Central America was on average 7.35 percent the value of the amount sent, to which must be added average additional costs of about 2.3 percent. The total average percentage paid on a transaction of US$150 was about 18 percent. These high charges are primarily due to a low competition in the market and this is why MFIs started to provide, together with the other traditional financial products, this valuable service for their clients.
Tidak ada komentar:
Posting Komentar