It Takes Money to Make Money.
Because banks are set up to make a profit, they are not likely to provide services to people who do not already have some amount of assets, property or money. This leaves a good portion of the world’s population without hope for formal financial support.
Microfinance means providing small loans to people of low income who do not have access to regular banking services. This small loan can often bridge the gap between poverty and hope for a secure future.
Explore the Issue
The need for microfinance services is thought to have reached more than 600 million people, but lack of capital means only about a third of them can be served.
Microfinance programs often target women in poor communities. Many studies have shown that access to financial support has improved the status of these women, allowing them to play a stronger role in their community’s decision making.
Questions about Community Development
- What are mico-loans and how are they used?
- Where are micro-loans needed most?
- Why are most micro-loans given to women?
Resources for Grades K-6
Resources for Grades 7-12
Links to Partner Resource Libraries
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How to Take Action
Do you want to get involved either locally or internationally in this issue?
If so, check out the Explore column to the right. It contains NGO projects that you could support, as well as links to the showcases.