Micro Loans...Helping people out of poverty one small loan at a time
I am so enthusiastic about micro loans because they are a very efficient way to help women and marginalized people out of poverty by giving them a hand up, not a hand out. Micro credit is a system of connecting with people through lending, for the sole purpose of alleviating poverty. Micro loans are typically directed to people in developing countries who have entrepreneurial ideas, but no credit or collateral, and a traditional bank loan is unattainable. Loan rates in most countries are set very high, and even if people could obtain them, they are not affordable.
These types of loans have been shown to have a much higher rate of repayment than traditional bank loans with over 96% of them repaid in full, on time. In most loan programs, the borrowers are pre-screened and re-approved to people who demonstrate a good entrepreneurial spirit, good work ethic, trustworthiness and a good business idea. It has been proven over and over that when women in business use the money to benefit their children and the community, and are a good risk with the highest percentage of payback. Loans help start businesses like carpentry shops, livestock, food services, weaving, coffee shops, growing flowers, and many others. There is so much talent and strength among the poor. Most people want to work, to provide for their families and themselves. Micro loans are a way to give people a chance to succeed and keep their dignity and build better communities. Loan recipients receive education in financing and business, and in turn, entire communities benefit. Every time you help someone in a community out of poverty, the community benefits in so many ways. These loans are not a hand out, these loans are repaid to the lender and are a real investment opportunity for you as well. If you are looking for one investment, this might be the one. Many times the cost of a small business loan is the same as the cost of one nice dinner out in the U.S. or Europe, and you can change people's lives forever!
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The vast majority of these entrepreneurs are women who have children to support, are hard working and just need a hand out of the cycle of poverty.