About Microcredit

In America and the rest of the developed world, we are privileged to have access to the credit that we need. When we need loans for college, to start a business, or to buy a house there are lenders available to make our dreams come true. Unfortunately, in much of the developed world, credit is hard to come by and when one can find it, it is often on less than fair terms.

Microcredit is the expansion of such credit options to those who are so poor that they would otherwise be considered unbankable. These loans are given to impoverished people (most often women) as a way to generate self-employment opportunities that build wealth and help them exit the clutches of poverty.

Microcredit differs significantly from other sources of aid to the developing world. Rather than focusing on the macro scale, microcredit focuses on individuals and getting them the small amounts of capital goods that they need to build their life. Unlike government assistance which can be squandered in bureaucracy or innocently allocated to projects that are not viable investments, microcredit focuses on the achievable goals of poor entrepreneurs who need a hand and a partner to help them out of poverty.

More importantly, microcredit is self-sustaining. Unlike traditional spending programs, microcredit loans are paid back and can therefore be relent back to new people who need help. As one entrepreneur pulls her or himself out of poverty, another can have the opportunity to do the same thing.

Whether it's taking advantage of land reforms in Latin America or getting simple tools to start a business in India, microcredit produces tangible and economically sound results for the world's poorest.