What Are the Different Types of Microfinance Internships?

True microfinance is a charitable type of financing provided by for-profit and nonprofit organizations to low-income individuals and communities in the hopes of improving their living conditions. Microfinance’s reputation suffered during a period when a segment of financial institutions was accused of exploiting vulnerable people and places, but the industry’s origins are selfless. Professionals in this field may have worked in investment banking or money management in the past. Students interested in microfinance internships can help the industry by conducting research, communicating with stakeholders, or developing financial products.

Microfinance internships can lead to international career opportunities for students. Microfinance institutions (MFIs) provide funding to some of the world’s most rural and impoverished countries. Microfinance internships are ideal for students with a financial aptitude and a desire to alleviate poverty around the world.

Because research is such an important part of microfinance efforts, many internships in this field are for research associates of some sort. A student might be in charge of writing updates and press releases about the effects of providing financing to impoverished countries. Interns may be assigned to work on teams that are developing ways to make the loan process more efficient. Students doing microfinance internships, for example, might look into ways to improve a borrower’s ability to repay loans or investigate public perceptions of microfinance loans.

It’s possible that students who pursue microfinance internships will avoid visiting impoverished areas. The headquarters of major MFIs are located in major cities in leading economies. As a result, student interns may participate in fundraising efforts in the United States or the United Kingdom without ever leaving the country. These microfinance internships are primarily about finance, so students with an economics background will benefit.

There are also microfinance internships available, some of which require travel. Students interested in traveling to regions where microfinance is common, such as Africa, Southeast Asia, and Latin America, may be able to assist candidates for financing or act as a liaison between borrowers and lenders.

Microfinance profits are rarely comparable to those found in traditional banking. Microfinance’s very nature is to lend poor people small amounts of money that will go a long way toward eradicating poverty. Although many microfinance internships are unpaid, there are exceptions. A university may sponsor a student’s microfinance internship and pay for travel, but students should be aware that unpaid internships are the industry standard before signing up for any program.