Paper

Securitisation: A Funding Alternative for Microfinance Institutions? (Presentation)

Proceedings from "New Partnerships for Innovation in Microfinance', 2005, Heidelberg, Germany
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This document is a presentation explaining how the concept of securitization can satisfy the growing needs of microfinance industry, especially the funding requirements of MFIs.

The document highlights the following:

  • Funding and equity requirements of MFIs;
  • Securitization:
    • Concept of and the kinds;
    • Basic structure and various aspects associated with it;
    • Domestic requirements.

Further the document talks about the possible role of securitization in microfinance and discusses the following;

  • Attractiveness associated with micro loans;
  • Methodology for micro loan securitization;
  • Classification of MFIs according to their functioning and MFIs best suited for securitization;
  • Possible costs and possible benefits for MFIs going in for securitization;
  • Role of development agencies in promoting the concept to MFIs.

About this Publication

By Schneider, C., Huttenrauch, H.
Published