Samenvatting

People want to participate and not remain on the side-lines. Most people have good ideas
for how to participate, but making those ideas a reality requires money, as well as
knowledge, information and an enabling environment. There are, in fact, people amongst
the lesser fortunate in society who want to be able to borrow money, take out insurance,
transfer money and set aside money as savings at affordable prices and ideally as close
as possible.
An increasing number of people seized such opportunities empowered by microfinance.
Today, a network of microfinance institutions is providing all kinds of services in many
countries, ranging from micro loans (microcredit), micro insurance, micro savings to micro
pensions. All of those services are offered in a way different to that which banks were
used to. A new way of handling money and bringing people and finance together has
developed. A network of new organisations has emerged that has gained attention.
The success of microcredit has been given the attention it deserved, yet microfinance is
now facing criticism. Does the money reach the right people? Why are the interest rates
so high? Who actually benefits from it? Why are private investors interested to join? And
why are microfinance organisations once set up with clear, social goals sold to private
parties on the market? The question is rightly tabled whether financial inclusion is still
being pursued. In order to contribute to that discussion, one needs to know what microcredit
or microfinance actually is all about. What do we understand by these terms?