THE AMAZING HELP OF MICROFINANCE CREDITS TO POOR COUNTRIES

People who work with micro credits take this kind of opportunity to very poor environments in poor countries. With these programs we can see improvement in human nutrition, kids that improve at school, better attendance to school, nine out of ten parents choose to pay school fees with the earnings of these credits. People move from extreme poverty to moderate poverty.

Microfinance brings benefits, but also pitfalls.

For poor people that don’t have access to jobs, the only alternative is microfinance credits to start working for themselves.

Microfinance credit are mostly given to women. The children of these women get a bunch of benefits. These women are not leaving poverty behind, but they improve their lives. They start cottage business. There is no overnight success, it takes years. Microfinance credits brings to poor persons financial changes, non-monetary changes and sustainability. Microcredit is not a panacea.

Financial changes: Changes in people’s life. Business expantion. They become self employed. They shift from extreme poverty to moderate poverty. Success.

Non-monetary changes: Better nutrition for kids. Improving school. More oportunities for children. Better school attendance. Better houses. Self confidence for some clients.

Sustainability: Move out of poverty. Loans can be recycled. Perpetuity. More leverage if they stay with the program.

Conclusion: Microfinance is a great help for people in disadvantage in very poor countries. They don’t have oportunities, they need skills to progress and they don’t have anyone. They don’t go to school. Some organizations provide small loans to people to help them to start or expand small businesses. Microfinance is no charity. People need to repay the loan and they can get a new one. It Is a good oportunity to leave behind poverty. People don’t need a collateral. Poor people in those countries is undercapitalized. Women are who mostly receive this credits because they are who usually bear the brunt of poverty. They benefit their children. The biggest impact of microcredit is: It helps people to move from EXTREME POVERTY TO MODERATE POVERTY.

It is very impressive what I learned with this topic, I had an idea about poor people, but I learned that a big needy family needs to make a choice of who of their children are going to school. Or the worst part, WHO OF THE FIVE OR

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