Entrepreneur: Tifa Efendic
© CARE/Jon Spaull
Rather, there is huge diversity in the types of microfinance institutions (MFIs) that provide financial services for low-income people. As Larry Reed writes “… by 2011, more than 3,600 institutions reported providing loans to 205 million people. These institutions ranged from small, village-based savings and loan groups in rural West Africa to banks in Latin America valued at more than a billion dollars”. Since MFIs have differing methodologies and objectives, the impact of microfinance will also vary according to how financial services are provided and whether or not clients receive other non-financial services and support.