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WHY MICROCREDIT?

Small loans to the very poorest are making major inroads into poverty.

There are many challenges in delivering help to poor people such as waste, creating dependency, misguided projects, bad government and corruption.

Through lending money directly to the very poorest, microcredit solves these problems by:

  • Accounting for every penny-  clear accounts are kept and interest payments are chased up with assistance being given to help the borrower succeed 
  • The women who borrow choose their own projects whether it be renting land, buying animals or starting a shop 
  • The loans go directly to the very poorest so drastically reducing the chances of corruption 
  • The profit from the business is invested in the children and the family's future through better food, housing, health and education 
  • The accounts of microfinance institutions (MFI's) that lend to the poor are rigorously analysed by credit rating organisations 
  • Many MFIs have a repayment rate of over 98%, see the mixmarket site.
  • MFI's can become operationally self sufficient after as little as 5 years of operation

Small loans of as little as £50 can make a huge difference to the lives of the poorest. The survival skills of the poor are amazing and they can make your money incredibly productive.

 

 

 

The most authoritative report on the effect of microfinace by S. Khandker of the World Bank concluded:

"microfinance programs matter a lot to the poor in raising per capita consumption"
And that: "microfinance is also positive for all households including non participants"

 

Fund their Future Ltd. Reg. Charity No. 1100200. The Coach House, 38 Cotham Hill, Bristol BS6 6LA. U.K. Tel: 07974 235494