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What is microfinance?
• Microfinance is the provision of financial services for low-income people. This includes micro-loans, savings, micro-insurance, money transfers and training.
• Usually provided through specialist microfinance institutions (MFIs) rather than commercial banks.
• UN Year of Microcredit in 2005 and Muhammad Yunus and Grameen received Nobel Peace Prize in 2006.
What is microfinance?
• Despite growing international attention, 2.5 billion people, most of whom live in developing countries, still lack access to basic financial services
• At CARE we believe that fair & effective financial services are central to addressing poverty
• And we have seen in the two decades we have been working in microfinance that providing people with appropriate financial tools & training can have a transformative effect on their lives – helping the poorest earn a living, grow businesses & create new jobs
• If not delivered well, it can worsen economic and social situations and result in, for example, over-indebtedness and worsening gender relations
Why is it important?
• Lendwithcare is a microfinance project implemented by the charity CARE International UK.
• It allows individuals/groups to lend small amounts of money (microloans) to entrepreneurs in developing countries to help them grow or expand their small business.
• Individuals visit the website – www.lendwithcare.org - and choose an entrepreneur to lend to. They can lend as little as £15 or the full loan.
• How it works video
What is lendwithcare?
• The entrepreneurs repay the loan back to you, then you can choose to re-lend to another entrepreneur, donate the repayments to CARE or withdraw the money.
• We work through local MFI partners in Togo, Benin, Philippines, Cambodia, and Ecuador (with strong social development missions who provide more than just finance).
• We are soon to start working with new partners in Pakistan & Indonesia & exploring partnerships in Bosnia & Herzegovina, Zambia and Malawi.
What is lendwithcare?
1.The Entrepreneur
has an idea
2.The microfinance
institution (MFI) gives
a loan
3. The Entrepreneur appears
on lendwithcare.org
4. You cover the
loan
5. The Entrepreneur
grows their business
6. The Entrepreneur repays your loan
7. You decide what
happens next
• Supports small businesses, creates employment and generates wealth as well as promotes self-reliance and independence in poor communities.
• Very transparent - all funds go to the MFI, we do not
charge interest or take anything in administrative costs.
• Lenders receive their money back (approx. 97% go on to re-lend) – the funds keep revolving and continuing to help people.
What are the benefits?
Progress to date
To date: • 10,000 lenders
• 62,000 loans
• £2 million in loans value
• 3,900 fully funded entrepreneurs
• 4 Rotary Districts & 24 Rotary Groups – at least!
Visit www.lendwithcare.org today!