Mikrorahoitusjärjestelmät

Mikrorahoitusjärjestelmä is a Finnish term that translates to "microfinance system." It refers to the provision of small financial services, such as loans, savings, and insurance, to low-income individuals and small businesses who typically lack access to traditional banking services. The primary goal of microfinance is to alleviate poverty and promote economic development by empowering these individuals and businesses to become more self-sufficient.

These services are often delivered through microfinance institutions (MFIs), which can take various forms, including non-governmental organizations (NGOs), credit unions, and specialized banks. MFIs often employ group lending methodologies, where small groups of borrowers are jointly responsible for repaying loans, thereby reducing the risk for the lender and fostering social collateral. Interest rates in microfinance can sometimes be higher than those of traditional banks due to the higher administrative costs associated with managing numerous small transactions and the perceived higher risk of default.

The impact of microfinance is a subject of ongoing debate. Proponents highlight its role in poverty reduction, increased income, improved health and education outcomes, and the empowerment of women. Critics, however, point to potential issues such as over-indebtedness, the limitations of microcredit in addressing structural causes of poverty, and the high interest rates charged by some MFIs. Despite these criticisms, microfinance remains a significant tool in the development sector, with a growing body of research seeking to understand its effectiveness and optimize its delivery.