What is Nano-finance?
Are you wondering what this unique term means? It might seem like a foreign term to you right now, but it represents a deep concept that has silently influenced economic transactions throughout human history. Its basic idea goes back to the simple ways people traded and borrowed money long ago.
In essence, nano-finance covers the access of financial services tailored to individuals at the micro-level, often operating within impoverished or underprivileged communities. It represents a nuanced approach to financial inclusion, seeking to empower individuals with even the smallest resources to participate in economic activities and improve their livelihoods. Nano business credit, and nano finance offer avenues for nano credit empowering individuals, opening doors for economic empowerment and resilience.
The Significance of Nano-Finance
The significance of nano-finance lies in its potential to democratize access to small scale financial services and empower individuals at the grassroots level. Imagine your financial assets or ALL your money has been stored in a plastic bucket, and think of your financial assets being fish for the time being.
Now, in order for the fish to survive and live in that bucket, it would be necessary to sprout water on top of the fish, so that they remain alive and begin to swim again. Think of that sprinkle of water as the term ‘nano-finance’ which basically means to use small amounts of income regardless of where it’s coming from, regaining ‘life’ to your fishing pond of financial assets.
The more money you earn, the more you want to see your fishing pond flourish, and if you take a few droplets of water from a neighbour or even a friend (which is money) that would help your fishing pond flourish as well.
How Microfinance Works: Unravelling Mechanism
Nano-finance is all about lending, borrowing, purchasing, discounting, or rediscounting bills or any negotiable bills being leased, with the purpose of doing business without assets or property without collateral damage.
Nano-finance really comes in handy, with small business owners, and for women entrepreneurs that are eager to start and run their own businesses. It makes your day-to-day bills seem like less of a burden, rather than them stressing you out. For example, do you ever wish to start a side hustle, without knowing where to fund it from? Are you stressed about how to cover your electricity bill for the month? Well, nano-finance has got you covered!
The entire concept behind this term is to lend someone a relatively small amount of money to build a business, where this idea basically stemmed from the terms ‘microfinance’ and ‘micro loan’.
Shortcomings of Microfinance: An Honest Review
You may be wondering why individuals don’t just stick to opting for a ‘micro credit’ although, what many individuals don’t realise is that popular banks who advertise individuals in indulging in ‘microfinance loans’ or a ‘micro loan’ is that they often have high interest rates and transaction costs that make these loans overwhelming and extremely steep for business owners to rely on.
These loans make it prohibitive for the lender and the borrower in the long run. Despite ‘micro loans’ helping millions of families and individuals worldwide, there still relies on an astounding group of consumers that find it hefty and hard to pay off. Not because they are not able to pay back the loan, but simply because there are many unbanked regions across the world that are not really bank savvy. Hakeem makes it it’s prime goal, to cater these loans to everyone, they charge minimal fees, to cater these loans to the masses, which make it extremely easy for lenders to pay back their loan.
Reason Why Nano-Finance Brings a Positive Change
The new wave of concern that is specifically regarding the never-ending hurdles of bank loans, and micro- credit solutions has brought ‘nano business credit’ financing to life. This new and popular wave began in Asian countries that prefer the Islamic banking where most banks provide and lend loans to rural areas and populations through the concept of ‘nano-finance’.
Just as the name exemplifies, the amount of money borrowed by nano-finance providers is relatively small. The perks of this banking concept are that it provides people with short term loans that are quick and easy to access, without having to follow a sturdy and lengthy process.
Nano-Finance for Farmers and Rural Communities
Individuals who face serious health crises, and need urgent funds for hospitalisation, and medicine can easily access a nano-finance loan. Families that are struggling to bring a steady cash flow, to make their households run, can easily have access to this loan. The prime example of the implementation of nano-finance in a country is India.
For instance, we take India as a case study, the ‘Institute of Nano-finance’ in India was introduced to the public around 2008, with the aim of helping the poorest of the poor women of society. It was a goal to empower individuals with ‘nano-credit’ so that they could live a substandard life than what they were living like before.
The Role of FinTech: Best Practices in Microfinance Management
Long gone are those days, where individuals were bound to go through tireless amounts of paperwork and strict rules and regulations for getting small financial loans. Wouldn’t it be terribly painful to see an individual who needs an urgent loan, or is looking for microcredit solutions to be filling out all this paperwork, waiting for it to be approved, and then get the loan they asked for? How is that still an emergency?
In today’s day and age, many countries and banks that have implemented the nano-finance option, are now lending loans to individuals orally or in some cases directly liquid. Today, many countries are benefiting from the new FinTech’s wave, which is through mobile banking and other interesting ways. This has made millions of people’s lives easier, where they can opt for a loan without having to think about it for months.
Nano-Financial Empowerment: Who Does It Empower?
Individuals who are constantly stressing about their electricity bills, and medical bills, all need to take a step back and get familiar with Hakeem. Women, who have thousands of problems, and issues regarding their health and well-being, and who have struggled to live a livelihood, need to familiarise themselves with nano-finance.
Women who are unable to turn to the government, banks, or MFIs in the hopes of getting a loan. The main idea behind this concept is to empower women to provide them with ‘nano-finance’, a chance for them to express themselves, and become women entrepreneurs.
Implementing Micro-Finance for Daily Wagers
In a third-world country like Pakistan, a significant portion of the population faces challenges in accessing formal banking services. With over 220 million people, Pakistan ranks third globally for its unbanked adult population, with approximately 100 million adults lacking access to bank accounts.
Among these individuals are daily wage earners such as local salesmen, household staff, tea vendors, and bus drivers, who often struggle to meet their financial needs due to limited access to traditional banking options.
Implementing micro-finance initiatives tailored for daily wagers is crucial in addressing this issue. These individuals cannot easily obtain loans from renowned banks due to stringent regulations and requirements.
Therefore, implementing micro-finance for daily wagers not only addresses immediate financial needs but also fosters inclusive prosperity and reduces poverty in countries like Pakistan.
The Final Word
Hardworking individuals that stick on a day-to-day salary, are not able to cope with some unexpected circumstances that they might fall under. Which is where ‘Hakeem’ falls into place, and helps them come out of their financial burdens. With loans such as 25,000 rupees that might seem like a horrifying burden to them at that point, can easily be resolved with the help of Hakeem. The upcoming generation, the youth, and the women of our nation, all have the luxury to rely on nano-financing which can change their lives for the better.
So, stop worrying about how you’re going to pay off your electricity bill. And start finding a solution! With Hakeem, you don’t need to count on others. Contact our team today and get started!
Meta Title: Understanding Nano-Finance: Empowering Financial Inclusion
Meta Description: Discover the significance of nano-finance, facilitating access to small loans and fostering financial inclusion. Learn how Hakeem empowers individuals.
