Title

Microfinance-Invest in a Life

Authors

Katie Williams

Streaming Media

Document Type

Article

Publication Date

2008

Abstract

Microfinancing allows banks, groups, and individuals from across the world to provide small loans to impoverished people in developing countries. In doing so, it allows those who would normally not be able to get a loan from a bank to have access to capital to start or maintain small businesses. Although this system is only effective for those who are in a position to capitalize on that opportunity, it has provided the necessary resources to millions who have greatly benefited from it. The impacts of microfinance are significant and far-reaching. The economic stability offered by the loans provides security against unexpected disasters, such as storms or diseases. This reduced vulnerability allows "poor households to make the transformation from "every-day survival" to "planning for the future". Also, because the credits are leant without gender-bias, the system promotes women empowerment. Studies have shown that this, in turn, lease to greater investment in children's education, better nutrition, better living conditions, and lower incidence of illness.