What is Microfinance?

What is Microfinance? 

Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services. The two main mechanisms for the delivery of financial services to such clients are: 

(1) relationship-based banking for individual entrepreneurs and small businesses; and 

(2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group. 

TGMP follows the group lending model used by the Grameen Bank because it creates accountability and solidarity amongst the 5 member loan groups. Loans are received by two people at a time and the remaining members of the group do not receive loans until the first are repaid.  

TGMP truly sees microfinance as a way to provide financial services to those who otherwise would not have access. Creating opportunities and allowing borrowers to make dreams a reality is an empowering experience for all of those involved.  

If you would like to learn more about the microfinance model we follow and the Grameen Trust check out this site.