micro credit: empower women, change the world
Women in developing countries need help getting access to capital to help them start or grow businesses. The concept of ‘micro credit’ – small loans distributed with low interest rates to groups of women who work together to pay off the collective loan – has been shown to work as a way to help empower female entrepreneurs who would not otherwise have access to capital.
- Microfinance institutions extend very small, uncollateralised loans to impoverished people, generally women, who want to start or expand an income generating business,
- TIAW provides $5,000 USD grants to the non-profit microfinance institutions that serve these women through a network of ‘Village Banks’.
- These Village Banks deliver the loan capital to groups of women borrowers at community gatherings. A Village Bank serves between 13 and 40 women, each of whom guarantees that she and her co-borrowers will repay their loans.
- Once the loan is repaid the microfinance institution informs TIAW and then loans the capital in perpetuity, exponentially helping more women in the community over time.