micro-finance

Microfinance- is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services

Microloans- is when a small amount of money to a developing business once the business is running well, the loaner will receive their money back.

•  loans people money to help them get a kick start in a small business that they think will be beneficial to their village or town

Ways microloans help

• Benefit others instead of the person allowing the community to benefit from it

Microloans- also helps investments in infrastructure, education, and legal reforms

• Allows small business owners access to insurance
• Have a positive effect on the community around them
• Provides microenterpreneurs with the capital needed to operate and expand their business
• Allows people to work doing something they like doing or switch jobs

Microfinance provides people don’t have the money to get a loan to start a business and pay for medical attention, schools etc.

It helps small businesses to stay running.  It helps the legal economy pay insurance

If you get sued, the microfinance will help it get started again.

Problems in Developing Countries

In most developing countries, the majority of the population are poor, but it is the poor people who are least likely to be helped by regular banks.

Problems in developing countries that can be helped by microfinance

• Malaria
• Drought
• Clean water
• Famine
• Pollution
• Poor health care
• Lack of supplies
• Poverty
• Bad electricity

Malaria

Is a life threatening disease transmitted from mosquitoes.

• Bill and Malinda Gates has distributed thousands of mosquito nets to infected areas.  

Micro Lenders

A micro lender is an organization that makes business loans to individuals who are not able to obtain financing from traditional lenders.  Micro lenders typically charge higher-than-average interest rates; their maximum loan is usually $25,000 or less. Recipients of micro-loans are typically in poverty or in development zones in the U.S., or who live in developing nations.