Microfinance

Affordable loans are key to men and women overcoming the barriers of poverty. But when these people are among the working poor, receiving a loan from a mainstream bank is nearly impossible. Without being able to offer collateral, banks are not willing to take on these risky clients – even if they are dedicated, hard workers.

Rejected by the bank, many find themselves back in the same place they started: working one or more jobs for little pay, struggling even to put food on the table for their families. They cannot build towards the future – all their efforts are directed at just getting through the day. Entrepreneurs determined to start a business will often borrow money from loan sharks, who charge as much as 75-125% interest per month on their loans, which drive families further into debt.

Microfinance is the hope for men and women seeking to find their way out of poverty. Microfinance institutions in their communities – such as the ones that partner with MEDA Trust – believe in their potential to succeed at business. By offering affordable loans and connecting these individuals with business and skills training, microfinance institutions enable men and women to take the steps that will lead them, their families and their communities out of poverty. As they succeed in business they are able to provide for their families; they can afford to send their children to school; and they can support other businesses in their community... helping the local economy grow strong.

Lives change when microfinance becomes a part of the community. You can be a part of the change by believing in the potential of women and men who are struggling to escape poverty and helping them through MEDA Trust.