Abstract:

The aim of this paper is to describe the possibilities of microfinancing on the global market as well as on the Slovak market, too. Microfinancing is one of those small ideas from which the financing tool with the great influence has come out. This idea was brought by Muhammad Yunus who provided small loans to local people as a solution for poverty. The different banks already tried to provide loans to poor households, however this provision was not effective, at all, and it ended with wasted subsidies and corruption. Moreover, economic theories also issued warnings against providing loans to low- income households.  Nowadays these microloans without guarantee, are provided by microfinance institutions to the clients who were refused as not profitable by banks. Regarding the fact that there are not any institutions that deal with microfinancing we are going to find out the possibilities of their existence on the Slovak market.