Microfinancing is an opportunity to get a small loan to people who have a small business and need to finance it. In this case, as a rule, no collateral is required, and the lender sets the minimum requirements for documents.
The microfinancing role:
- Microfinancing as a way to reduce poverty, including by means of supporting self-employment of the population.
- Microfinancing is one of the engines for the development of micro and small businesses, the middle class formation.
The Main Stages of the microfinancing formation and development in the Republic of Tajikistan:
- Stage I (1994-1999). Microfinancing System Emergence.
- Stage II (1999-2003). – a period of gradual increasing in microfinance programs, the transition to financing in cash and the phasing out of financing in natural form.
- Stage III (2004-first half of 2008). – microfinancing institutionalization period.
- Stage IV (second half of 2008 – 2009). It is characterized by the microfinance sector activities in the context of the global financial and economic crisis.
- Stage V (2010 to the present). Post-crisis gradual recovery which allowing to identify prospects taking into consideration the tasks completion of the national development strategy, banking strategy, medium-term development programs for sectors and regions, and a significant improvement in the investment climate.