Success Facts
Microloans are proven to be an effective way to fight poverty. They give those who need the help a way to provide themselves and their families a sustainable livelihood and brighter future. Read the key success facts below to see how Microloans are helping.
Recyclability
Once a microloan is repaid, it is recycled to help someone else build their small business idea.
This way it is a gift that keeps on giving, meaning that the original support that you provided continues way after the original loan was repaid, changing the livelihoods for more individuals and fighting poverty again and again.
93.4% Loan repayment rate
Not only are microloans empowering, they work!
93.4% of those that receive a microloan pay them back in full. A great demonstration that people living in poverty, when given the chance, can build their own successful livelihood.
Microloans level the playing field
Women work two-thirds of the world's working hours, yet only earn 10% of the world's income. Microloans give women the chance to own their own small business, earn their own income, stimulate their local economy and become respected members of their own communities.
The more microloans that are made, the more people we can help, and the more poverty we can fight. In most cases the people that are helped could not have started their small businesses because they can't access the money they need from conventional banks.
Microloans helped to create 985,000 jobs
So far World Vision has disbursed £240 million in small loans to 604,000 hardworking recipients in developing countries helping to create and sustain 985,000 jobs.
Global Microloan facts:
The challenge
- One in five people worldwide survive on less than $1.25 a day.
- Only 3% of the need for microloans is being met. 16 million people currently use microloans.
- 500 million people could potentially benefit from microloans.
World Vision Microloan facts:
People helped
- Active borrowers: 604,000.
- Jobs created or sustained last year: 985,000.
- Typical borrower: woman (68%).
- Children impacted last year: 1.86 million.
Loans given
- Average loan size: $671.00.
- Loan repayment rate: 93.4%.
- Loan portfolio: $397 million.
- Since 1983, World Vision has disbursed 3,500,000 loans, totalling more than $1.8 billion.
Microfinance institutions (MFIs) leveraged
- Definition: an MFI is a local lending office within a community, managed by local professionals whose experience ensures funds are protected and wisely invested.
- Current network of MFIs: 42.
- Forbes recognised two World Vision MFIs among their top 50 list of MFIs (out of the more than 12,000 currently in operation worldwide).
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