Imagine... How can you provide for your family if your local savings
institute has gone bankrupt? Or, how can you realise your dream of starting
a small shop or market store if no lending institution is willing to
lend you any money to buy the materials you need to get started? Or,
how can you build a home for your family if nobody is willing to lend
you the money? This is a reality for many people in parts of Asia and
is Micro Financing?
Micro financing means a stimulus to individual and society for economic
growth. The loans people receive are usually quite small, 300 Euros
on average. Often this is enough to start a successful business and
break out of the negative spiral people often find themselves in. Micro
Credits enables them to earn themselves and their family a living and
also gives them an opportunity to improve their community.
Using groups of people as a form of guarantee, microcredit organisations
are willing to lend money for the purchase of for example a new cow,
tools or merchandise. Lending facilities also enable people to mobilise
their own talents to make a trade for themselves and therefore become
self-supporting. So this form of assistance results in a long-term solution
in the fight to escape poverty.