Rural finance

Helping to promote sustainable credit

Increasing access to financial services still has a role in combating rural poverty. In the past, the narrow focus on subsidized credit for agricultural production proved unsustainable. However, recent experiences have been more positive. By understanding the breadth of financial needs of the poor, and modifying approaches to providing savings and credit services, financial institutions have begun to realize the potential of the rural market. Further expansion into this market is possible, through collaboration between the formal and informal sectors, reducing the 'distance' between institutions and their clientele, and adapting and innovating service delivery mechanisms to local conditions.

Development Issues paper suggests the types of financial services required and discusses:

sources of financial services for the rural poor

constraints to formal sector provision of micro-finance services for the poor

role of informal finance - what are the drawbacks?

the suggestion that interventions to improve access to financial services for the poor must be tailored to the needs of service users

Finally disusses developing financial services for the poor, including enhancing deposit mobilization among the poor , lowering credit access barriers, the role of groups and linking financial and non-financial services as evidence shows that greater success is achieved when credit is combined with non-financial business development activities which reduce production and marketing risks.

Related content

Document
Welfare and the depth of informality: Evidence from five African countries
E. Egger, C. Poggi, H. Rufrancos / United Nations University, 2021
This study explores the relationship between household poverty and depth of informality by proposing a new measure of informality at the household level. It is defined as the share of activities (hours worked or income earned) without social insurance for wage workers in the household.
Document
The Green Revolution and Poverty in Northern Tamil Nadu: a Brief Synthesis of Village-Level Research in the Last Half-Century
B. Harriss-White / STEPS Centre, Institute of Development Studies, 2020
Between 1972 and 2014, in Northern Tamil Nadu (NTN), India, the Green Revolution (GR) in agriculture was studied through five rounds of village-level studies (VLS).
Document
The green revolution and poverty in Northern Tamil Nadu: A brief synthesis of village-level research in the last half-century
B. Harriss-White / STEPS Centre, Institute of Development Studies, 2021
Between 1972 and 2014, in Northern Tamil Nadu (NTN), India, the Green Revolution (GR) in agriculture was studied through five rounds of village-level studies (VLS).
Document
Beyond informal social protection – personal networks of economic support in Namibia
A. Oppel / Institute of Development Studies UK, 2020
This paper poses a different lens on informal social protection (ISP). ISP is generally understood as practices of livelihood support among individuals. While studies have explored the social dynamics of such, they rarely do so beyond the conceptual space of informalities and poverty.
Document
Impact lessons: Engaging research with global movements
K. Roelen, K. Shephard / Impact Initiative, 2020
This working paper highlights the key points and emerging policy themes arising from a virtual event hosted by the Global Coalition Against Child Poverty (GCACP) and the Impact Initiative in May 2020. The event concentrated on one impact pathway: engagement with global advocacy movements.

Eldis

Rural finance

Rural finance

Author

Publisher

Power to the people: pro-poor electricity provision

Site

About

Engage

You are here

Rural finance

Rural finance

Author

Publisher

Focus themes

Related website content

Related content