Microcredit Organizations Role of Micro Credit Organizations Seen as major solution to global poverty and create long term economic development through empowerment • Thousands across the world, refers to small amounts of money that are loaned (not grants) that are given to clients • these clients are loaned to who are not seen as a credit risk o hard time getting loans because they’re poor, uneducated, and don’t have collateral and are unemployment • clients tend to be overwhelmingly women o loan amounts 20-800 dollars • most microcredit loans paid back in 6 months • initial goal is that its money given to help grow a business (not start) so it can be more productive and therefore profitable o logic of microcredit is to increase to productivity and profit margin so that in the long turn they can empower their clients and reduce poverty • interest rates are at market rate How? • Recipients of microcredit are required to attend meetings (monthly weekly)
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