Microfinance or microlending (the practice of providing small loans to the poor) has grown into a worldwide industry, delivering billions of dollars to entrepreneurial people and families in the developing world.
Microfinance gained public attention in recent years, most notably when microlending pioneer Muhammad Yunus and the Grameen Bank won the Nobel Prize in 2006, and online microlending platforms Kiva and Microplace gained media attention by enabling individuals to loan money to developing world entrepreneurs.
Today, thousands of non-governmental organizations (NGOs) and microfinance institutions (MFIs) lend billions of dollars to the poor guided by the belief that access to credit is a primary tool for reducing poverty.
But the question persists: Does lending alone reduce poverty?
GIVE partners with MFIs to provide needed nonfinancial services that focus on helping borrowers build successful businesses while addressing local needs, challenges opportunities.
We believe that microcredit is most effective when combined with other support services, including small business training, mentorship, financial literacy and healthcare services for the poor.