Microcredit Works
Microcredit has been an interest of mine ever since my first trip to a developing country and seeing the dire plight of the poor. Microcredit is the extension of small loans ($50-100) to entrepreneurs struggling in poverty. Muhammed Yunus, the founder of Microcredit, recently won the Nobel Peace Prize, for empowering the poor through this type of model. Microcredit is now a global tool used to help the developing poor out of the bondages of poverty, equipping them with the resources to start and grow their enterprises.
Here are two interesting and encouraging statistics about the effectiveness of microcredit in the developing world:
1. Loan repayment rate is 97-98%
2. 90% of borrowers report increased incomes as a result of loan
There are several microcredit organizations around the world, doing great work and changing communities, one loan at at time. Kiva is one of the most novel microcredit organizations out there. They have a peer-to-peer lending model and a donor can easily track their "investment" online, while developing a relationship with the entrepreneur. NamasteDirect, a US-based organization, is another microlending organization, supporting rural entrepreneurs in Guatemala. Last Spring, I volunteered some of my time in Guatemala with NamasteDirect, investigating their programs, while also writing a couple of articles for them.
In closing, make a life changing difference, empower the poor through these innovative programs. Click on one of the banners below to get going.
