a variety of organizations that provide small loans to low-income individuals who do not have access to banks.
Micro-Finance Institutions
privately owned or managed institutions that offers savings, current accounts, loans and insurance to farmers, fishermen and small entrepreneurs in a small community.
Rural Banks
– an association of people with common interests who have joined together to meet their social, economic, and cultural needs through a jointly-owned and democratically controlled business. Goods and services include farm inputs, farm labor,
Cooperative
– a non-profit group that offers broad services such as financial education, savings, loans, credit, business planning, nutrition and farm diversification plan, to develop and promote agro-enterprise in rural areas
NGO
it refers to the length of time after the due date during which payment may be without penalty.
Grace Period
is the length of time allocated for the repayment of the loan.
Loan Repayment Period
refers to fees such as processing or service fees charged to an account for processing the loan. These charges may be invoiced separately or as part of the interest rate.
Bank Charges
– is the cost of borrowing money that is usually calculated as percentage of the amount borrowed. It varies depending on the financial service provider.
Interest Rate
a formal of written document that contains the projections for the operational and financial objective of business.
Business Plan
