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microloans to help the poor

What we provide

Microloans offer a way out of poverty

Microloans help vulnerable moms start small businesses.To succeed in business, you must start with something. Sheer will does not give an aspiring businessperson money to buy supplies. People living in extreme poverty - especially women - are not able to borrow from banks, and local money lenders charge exorbitant interest rates, making repayment nearly impossible.

World Concern provides that spark of hope, in the form of a small business loan, that is often the first step up out of poverty. We have seen how people seize the opportunities loans provide. We have seen the will to succeed flourish with the help of a microloan.

Join us in helping transform lives!

Read more about microloans

Download a project profile about our business loans.


A mother escapes financial peril

Microloans alleviate poverty“I had given up hope of surviving in this world with my two children,” said Bangladeshi mother Jotsna Begum.

She and her husband Farid initially had a happy marriage and were content with one son and one daughter. But then Farid became addicted to drugs. Soon their family had no income at all, and they struggled to put food on the table.

But then, she heard about World Concern's microloan program...

Read story


World Concern village banks empower Kenyans

Village banks: a safe, accessible place for savingsWhen you make a dollar a day, it's difficult to bear to pay six dollars to ride into town dozens of miles away just to visit a bank.

That's the situation men and women in Kenya face in some of the rural communities where we work. Because it's not feasible to bank in town, people hide money in their homes. With that comes the risk of losing it in a fire or being robbed.

To meet the unique needs of these remote villages, World Concern helps rural communities in Kenya form village banks. We - and the customers - are pleased with how they work.

Find out how these banks have attracted thousands of customers.


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Why this is important

Protecting savings and expanding small businesses

  • Extreme poverty is defined as living on less than $1.25 per day
  • 1.4 billion people (one in four) live in extreme poverty
  • Extreme poverty is most common in Sub-Saharan Africa, SE Asia and Central America, areas where we work
  • More than 5 million people live in Bangladeshi slums
  • 45% of people in Bangladesh live in poverty
  • 60% of people in Bolivia live in poverty
  • Money lenders on the streets of Bangladesh may charge 50% to 100% interest annually on microloans
    • UNICEF, World Concern, CIA "The World Factbook"

 

How we provide it

Success in lending and repayment

  • Loans range from less than $100 to more than $2,000
  • Repayment rates for microloans and loans through village banks generally range from 95%-98%
  • Women have grown businesses to employ as many as 14 other workers, allowing other women to provide for their families
  • The primary function of microloans is to develop and expand small businesses by purchasing supplies such as fabric and equipment for fish farms
  • African village banks are intended to be a place for savings, though they do provide some loans for seeds and farming
    • Source: World Concern

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Financial accountability

World Concern has earned a Four Star charity rating. More than 90% of donations (cash plus gifts-in-kind) go to programs.