Micro Financing

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 Africa.

What 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.