PS 147 - Microcredit Organizations Role of Micro Credit...

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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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