International Journal of Innovative Research and Knowledge

Volume-7 Issue-6, June 2022

Title: Asset Financing for Positive Image of Microfinance Industry in Tanzania: TAMPRO SACCOS as a Case Study

Author: Abdallah Y. Tego


To mitigate the danger of creating more poverty and rescue the image of microfinance institutions, asset-based financing is appropriate tool for typical microfinance clients. Asset-based financing methodology is full of potentials to prevent diversion of funds into consumption domain and help microfinance clients become productive, and likewise create positive image of microfinance institutions. To this regard, the methodology of financing for poor microfinance clients matters most than just lowering interest rates as suggested by others. Asset-based financing as advocated in Islam, does not easily provide room to divert funds into non-productive ventures. However, the mainstream microfinance sector in Tanzania employed interest-based financing methodology for microfinance clients. This methodology does provide a room for clients to divert cash into consumption and finally failed to make repayments to clear the loans and become poorer than before. Consequently, following measures of loan recover procedures; the targeted community is left with negative impression on microfinance institutions. This study is recommended the use of asset financing as a way to make micro clients productive and prevent the possibility of creating positive image or impression on microfinance sector in Tanzania.

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ISSN: 2213-1356

Publisher: Scholar Touch Publishers

Area/Scope: Business, Economics & Management; Social Science, Literature, Arts & Humanities; Engineering & Technology; Life Science & Physical Science, Health & Medical Science

Frequency: Monthly

Format: Online & Print

Language: English

Review Process: Double Blinded

Access: Open Access