Information On Microfinance

Microfinance- a general term to describe financial services to low income individuals or to those who do not have access to typical banking services
Microloans- loans people money to help them get a kickstart in a small business that they think will be beneficial to their village or town

Microloan- a person who lends a small amount of money to a developing business. Once the business is running good the lender will receive their money back

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

Microfinance gives money to people who dont have much to start a business or for the economy, it also can help protect your business if you get sued. Allows poor people to build their assets by getting land or improving their homes.

In many developing countries the majority of the population is poor. Poor people are the 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,

Malaria is a life threatening disease transmitted by mosquitos. Once was thought that it came from fetid marshes. Every year malaria causes 655,000 deaths.

Bill gates is a philanthropist. Bill and Melinda gates donate billions of dollars to help cure diseases and help sell mosquito nets.

Microlenders is an organization that makes business loans to individuals who are not able to get money from traditional lenders. Charge higher than average interest rates. Their maximum loan is usually 25,000 or less. People who receive microloans are usually individuals in poverty or in development zones in the US or who live in developing nations.

Ways Microloans can help
- helps expand their business
- the business can have a positive affect on the community around them
- allows small business loaners access to insurance
- create choice, allows people to switch professions and work in a field that interest them or interest them more than their last job