Modern" or "new paradigm" microfinancial services are reaching perhaps as many as 20 million people worldwide. These services are being provided by existing banks which have added microfinance to their product portfolio, by specialized microfinance institutions (MFIs) and by non-governmental organization (NGOs) which offer microfinance along with other services. This training manual is designed to meet the needs of those who train staff for banks, MFIs and NGOs. It should enable them to provide effective training for those who work, or may in the future work, in the field of microfinance. "Practical Microfinance" provides detailed step-by-step descriptions for 22 sessions which together offer a complete 5-10 day course on microfinance. The sessions may also be used individually, selected from to make up tailor-made courses, or integrated with other materials. The sessions cover a wide range of topics including: introduction to financial accounts; undertaking field visits; analysis of MFIs; group and individual lending; micro-insurance and micro-savings; and measuring the impact of microfinance. The sessions have been extensively tested in courses at the Cranfield School of Management in the UK, and in a number of different institutions in India, Bangladesh, Pakistan, Kenya, Uganda and elsewhere. The session exercise and case study handouts may be photocopied for participants or customized to meet trainees' needs via freely available web files. An introductory chapter includes advice on how to use the material in the book and a list of recommended resources and full index are provided for ease of reference. It is hoped that this manual will help improve the content and delivery of microfinance training and thus contribute to the greater availability of affordable, accessible and profitable financial services to the poor.