Access to finance is a major problem for poor women and in particular for poor self-employed women such as hawkers, vendors, home-based workers, manual labourers and service providers. Emergencies and obligations often force women to borrow heavily. However, they are unlikely to have the required experience to obtain credit from a financial institution in the formal sector, while the institution's regulations and procedures rarely meet the needs and conditions of the woman seeking a loan. Poor self-employed women as a result are often dependent on informal money-lenders, contractors and wholesalers who charge exorbitant interest rates.

Characteristics of financial services that meet women's needs

• Loans are available for trade and services as well as manufacturing.
• Collateral is not required because substitutes such as solidarity groups, character
• references, jewellery and personal effects are acceptable.
• Deposit services are offered.
• Loans are available for short-term working capital.
• Loans are available in small amounts.
• Loan repayment schedules fit women's business cycles.
• Loan sizes may be increased upon satisfactory repayment of first-time loans.
• Micro-enterprises with few employees are eligible.
• Signature of spouse or male relative is not required.
• Literacy is not a requirement.
• Loans are easily and quickly processed.
• Loan officers can assist women in completing forms.
• Loans are given to home-based or ambulant businesses.
• Location is convenient and safe for women.
• The hours of operation of the institution are compatible with women's business
• and domestic obligations.
• Training is not required for disbursement of credit.
• There are special arrangement to assist women borrowers unfamiliar with formal
• financial service institutions.

 

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