In Ethiopia poor cannot get loan from formal financial institutions due to lack of asset used as collateral. Microfinance institutions are choice-less solution since they have the advantage for poor in substituting collateral by group guarantees or compulsory savings which makes easy for poor to get access to loan. Even though these institutions are the solution for poor they have got risks which hinder their sustainability and performance. Henceforth, these risks ought to be clearly identified and prioritized so that their effect on performance will be minimized and growth and achievement of...
In Ethiopia poor cannot get loan from formal financial institutions due to lack of asset used as collateral. Microfinance institutions are choice-less...