Microfinance

process

-organizations partner with a microfinance institution -people in low-income areas approach field partners and ask for loans -field partners share their stories and people around the world provide small loans -the borrower is now able to buy the equipment needed to have a successful business and earns income -the borrower begins paying back the loan -over a short period of time, the small loan is paid back in full

Hope International services

-traditional microfinance programs -microfinance plus programs -savings-led microfinance programs -small & medium enterprise development programs

founder of microfinance

Muhammad Yunus Armeen Bank (Bangladesh)

definition of microfinance

a change of financial services including credit, savings, insurance, money transfers & other financial products; targeted at low-income people

key issue

banks make lot more money with large loans

Esperanza International

exists to free children & their families from poverty through initiatives that generate income, education & health, restore self-worth & dignity to those who have lost hope

Kiva

founded in 2005 1.5m lenders $850m loans 98% repayment rate

Integral Development Model (IDM)

microfinance services education & vocational training health care community development