Abstrack:
One of the Millennium Development Goals (MDGs) is the eradication poverty and hunger. And this is the first goal out of the eight MDGs. The growth of microfinance institutions is very helpful in increasing the income of low to the middle class. In addition, the micro finance institution acts with more family-oriented approach, where the paper work required for applying loan is not as complex as the documentation required for banks. So that microfinance institutions are encouraged to reach out to the every corner of the interior. It can be in the form of cooperatives, Economic Business Village – Savings and Loans, and Credit Union. Bank branches may not be able to reach rural areas because of the high cost economy, so microfinance institutions can be relied by the government to improve the welfare of rural and urban communities. But microlending, can be misused if not given with appropriate understanding and training. Therefore, microfinance institutions must have a fixed identity, vision and mission, in order not to get stuck in a consumptive rather than productive economy. This research was based on case study of Credit Union live experiences, which have been proven to be successful in improving the welfare of farmers and micro entrepreneurs. This study was also conducted using in-depth interviews to the management of the Credit Union at the head office in Jakarta.
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