EastAsiaLink.com
Title
Microfinance Corp. - microcredit, microlending, micro-finance, micro-credit
Description
Success story
Charise and her grandfather run this small juice stand and store. She thought it would be good to sell fresh fruit juice but didn't know how. A "bicycle banker" from the Microfinance Corporation suggested she take a small loan to buy fruit in bulk and now she sells more juice than anything else.
Welcome
Traditionally banks and lending institutions do not lend money to low-income individuals, a lack of information about individual clients, acceptable collateral and the high transaction cost of processing small loans have been the reason. Countries like the Philippines and Vietnam rely on a large micro enterprise sector to fuel the economy and help offset the high unemployment rates. Most financial institutions, including rural banks are usually reluctant and institutionally ill equipped to service these micro enterprises, particularly the poor.
There is a growing market in the East Asia for lending services provided by non-government organizations. The rapid growth during the recent year and with government encouragement creates an enormous demand for the expansion of small businesses. The lack of a lower income lending system from banks creates an opportunity for non- banking lending services to enter the market. The goal is to provide small and medium size loans to small businesses.
Logos
