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Microloan Entrepreneur Testimonial

How microloans work

How microloans work video

Watch a short video to see how microloans change lives and entire communities!

What is a microloan?

A microloan is a small business loan that empowers hardworking women and men to lift themselves out of poverty. Microloans are a proven and sustainable method of economic development. For example, a microloan could help a single mother in Mexico buy what she needs to bake and sell bread. She can then earn enough through her small business to support her family and repay the microloan. Afterward, that microloan becomes available to help another entrepreneur. And so on.

Microloans fight extreme poverty.

Microloans help impoverished people move from dependence on aid to financial self-sustainability. As microloan recipients start businesses, they earn money to feed their children, send them to school, and save funds for the future. When a microloan is used to expand a business and hire additional employees, the entire community gets an economic boost. Once repaid and recycled, microloans can help family after family lift themselves out of poverty.

Microloans for women are a wise investment.

Investing in women is a proven way to fight poverty. Women show a higher microloan repayment rate and consistently invest more of their earnings in their children and families than men. That's why nearly 70 percent of microloans donated through Micro go to women entrepreneurs. "My family gets many benefits," says A'i Gwonda, a mother of six in Africa. She used her microloan of $100 to grow her peanut oil and millet cake business. "We can eat and drink well," she says. "I can clothe myself and my family. I have four daughters and all of them are going to school."

Economic challenges facing women:

  • Women work two-thirds of the world's working hours.
  • Only 10 percent of the world's income goes to women.
  • Women own just 1 percent of the world's property.

Microloans enable women entrepreneurs to:

  • Access basic healthcare, like medicine and checkups
  • Buy nutritious food for their children instead of relying only on what they can grow
  • Send their children to school and pay for educational supplies
  • Improve living conditions for their families
  • Gain confidence and promote gender equality

Your gift of a microloan is a tax-deductible donation.

You get a receipt and a tax deduction, while your donated microloan, once repaid, stays in the country where your original entrepreneur lives. Local microcredit officers from a World Vision community will carefully select the next microloan recipient. Prospective borrowers must show an enterprising spirit, be trustworthy, and have a sound business idea. Once their microloan is repaid, your donation continues to recycle, helping more and more hardworking people.

What sets Micro apart from other microloan programs?

While an important step, microloans by themselves are not enough to end global poverty. That's why our microloans are a part of World Vision's greater community development projects. Small businesses flourish in a self-sustaining environment because World Vision is also working to address other community needs like access to clean water, nutritious food, basic healthcare, and education.

Micro is brought to you by World Vision.

World Vision is a Christian humanitarian organization dedicated to working with children, families, and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. World Vision serves all people, regardless of religion, race, ethnicity, or gender. Currently, World Vision provides hope and assistance to approximately 100 million people in nearly 100 countries.

World Vision has been serving the poor for six decades.

  • Supplying microloans for the last two decades
  • Providing microfinance services in more than 40 countries
  • Impacting nearly 1 million jobs a year through microloans

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What is Micro?

Micro is a microlending web site that connects you one-to-one with the entrepreneur of your choice - each with a sound business idea, but no access to credit. You choose whether to support a man or woman entrepreneur, invest in a country you care about, or reach out to a person whose story touches your heart. Then you can fund all or part of your chosen entrepreneur's loan. Your entrepreneur also receives business training based on ethical principles and proven strategies. What's more, every microloan you donate is tax-deductible.

Donate a microloan with confidence through Micro.

  • All microloans go to a pre-qualified borrower.
  • Microloans made through World Vision have an average repayment rate of nearly 99 percent.
  • Upon repayment, microloans are recycled to help other entrepreneurs in the same country.