Microfinance 101: investing in economic development
Microfinance - also called microcredit, microlending, or microloans - gives you the opportunity to fund small loans through local microfinance institutions to borrowers who possess minimal collateral for a traditional loan. Microfinance began in the 1970s with loans for women to start small businesses.
World Vision Micro and microfinance loans
Micro lets you make microfinance peer-to-peer loans, giving you a unique connection to one entrepreneur in a developing country.
- Microfinance loans can range from $25 to $5,000
- Average microfinance loan cycle: 3 to 12 months
- Repayment rate of microfinance loans: 98.7%
Microfinance alleviates global poverty
Through microfinance you can support small-scale entrepreneurship, providing financial services to impoverished women and men and empowering them to work their own way out of poverty. Microfinance has proven to be an effective economic development strategy.
