Lingering Challenges of Microfinance Institutions (MFIS) and the Way Forward

Abstract

The microfinance institutions (MFIs) are the agencies that attract global concern due to their importance in ensuring financial inclusion as well as helping poor in addressing poverty. There are parts of specialised financial institutions. Therefore the aim of this paper is to implore the lingering challenges of MFIs and proposed way forward to address them. In order to attain the objectives, review of some related literature were embark upon. Among the findings of the study are the challenges that bedevilling MFIs. The challenges include low outreach, criteria used in granting micro credits, regulatory problems, inappropriate human resources, delay in loan re-payment, high transaction cost, infrastructure etc. Lastly the paper has suggested way forward to address the challenges.