Abstract
The main theme of this project is the facilitation and development of microfinance, which is the "provision of loans, savings, insurance, payments, and other basic financial services to low-income groups? . The project is dedicated to identifying and evaluating existing options for microfinance institutions (MFIs) who wish make use of the funds to take advantage of the huge potential market for microfinance. This topic is particularly important as the current lack of funds remains as the major growth constraint for the microfinance industry. Global capital markets would enable MFIs to raise capital at lower rates. The following three sources of commercial financing are then outlined and evaluated in the context of MFIs: bonds, securitization and (quasi-) equity. However, though microfinance can be profitable, investors remain reluctant to invest in MFIs. We will identify the main concerns preventing substantial investment in this sector.
