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Micro Loans
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Microfinance stands as one of the most promising and cost-effective tools in the fight against global poverty.
ECONOMIST AT NYU, ― Jonathan Morduch
What are Micro Loans?
Microloans are utilized in the developing world to provide unbanked individuals with the means to establish small businesses, generating income and employment opportunities that directly address poverty at the grassroots level, while also promoting financial inclusion and fostering local economic growth.
What is the unbanked challenge?
In Latin America, the challenge of women being unbanked persists due to barriers such as limited access to formal financial institutions, cultural norms, and gender disparities, which hinder their ability to save, invest, and access credit, thereby constraining their economic empowerment and participation in the broader financial system to near nothing.
The Micro Loan Process
Locate Who We Help
Our organization seeks to improve women in poverty in rural parts of Latin America, we first start by working with partners to locate women who meet this criteria and who would benefit from a micro loan.
1
Working to Fund
We then work to fundraise the micro loans we see to support through generous donors and work through global poverty micro loan infrastructure programs to send the loan over.
2
Small Business
With the micro loan, borrowers will use funds to buy resources like seeds, sewing machines, farming tools, food stalls, baking resources, animals, store stock, fabric, fertilizer, and more. They will use these resources to open up garment services, farms, food stalls, stores, and more.
3
Supportive Income
After using the resources to open up services in their communities, they will have a supportive long term source of income that enables them to pay back the loan and sustain themselves out of poverty many years afterwards.
4
Continues to Be Passed On
When you fund someones micro loan, and when they pay it back, your donation wont stop. We continue to use your donation to fund over and over again as much as we can. Your dollar stretches far here.
5
What Backs Micro Loans?
Yale University, The Macroeconomics of Microfinance
Highly Cited Study, Empowering Women Through Micro Finance: Evidence from Nigeria
Is Micro Finance an Effective Tool to Achieve Development Goals? A Case of Nepal
Watch Micro Loans In Action
How do we mitigate risk of borrowers defaulting on debt.
Microloans reach populations that have limited access to financial services, so these types of loans come with some inherent risks for our shared desire to create impact. To mitigate risk we do a few things with your donation
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1) Ensure your donation is going to someone who is vetted with a verified field partner, community member, or community trustee. 2) Diversify your donation across many women who need support. 3) Diversify your donation across countries.
Please note, our loan infrastructure method has a 96% success rate. These measures create a positive and healthy process, as show in the high success rate. We have a shared desire to ensure that your donation creates an impact. It is our mission. It is our duty.
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