Local micro-funds

Local micro-funds

publish date : 2020-07-30 print
Local micro-funds

Local micro-funds

Villagers and producers of agricultural products, etc. to provide the capital and credit needed for product development in various ways, including the use of personal savings and receiving facilities from financial and credit sources. Local micro-funds are among the sources of funding and credit needed by rural producers, the establishment of which has been considered in recent decades and facilitates the development of local communities by creating and expanding income-generating activities.

The program was born in Southeast Asia, Bangladesh and India and has gradually expanded to many developing and industrialized countries. And in our country, during the last two decades, they have been localized and successful in accordance with the economic and social conditions. The nature of the local micro-funds is the development of the fund, which in addition to financing other social empowerment services. The following executive instructions have been prepared by Omid Entrepreneurship Fund to explain the goals, rules and regulations for the implementation of local micro-funds.

 

The most important goals of establishing micro-credit funds are:

1- Empowering the local community by creating a suitable platform for collective participation in the form of savings credit groups.

2- Improving the individual and social skills of the members through educational programs.

3- Equipping the savings of member families.

4- Increasing the income of low-income households by paying small loans to carry out income-generating activities.

5. Easy access to financial resources.

 6- Strengthening the economy of the families of the rural women.

 7- Strengthening the participatory spirit in collective and participatory businesses.

 8- Creating value creation in the products of rural women and members of the funds.

 9- Poverty reduction in rural areas and among rural women.

 10- Supporting cooperatives in meeting the financial needs for the market of selling products by members.