Microfinance fights extreme poverty and helps impoverished people move from dependence on aid to financial self-sustainability. Microcredit, which is a part of microfinance, is the extension of small loans (microloans) to people who are poor and lack collateral and steady employment. It is designed to help alleviate poverty, empower women and support entrepreneurship. As microfinance service recipients start businesses, they can earn enough money to feed their families, send their children to school and save funds for the future. When a microloan is used to expand a business and hire additional employees, the entire community gets an economic boost. Once repaid and recycled, microloans can help people in the community to become financially independent.

The Microloans are targeted to women, especially widows, who are living below poverty line and struggling to survive. Investing in women is a proven way to fight poverty in our society. Women tend to have a higher microloan repayment rate and consistently invest more of their earnings in their children and families than men.

Bina Foundation’s microloan is a small, interest-free business loan that empowers hardworking women to lift themselves out of poverty. This is a proven and sustainable method of economic development. For example, a microloan could help a widow expand her second hand clothing business. She can earn enough through her small business to support her family and repay the loan. Thereafter, that small loan becomes available to help another entrepreneur and in turn can help thousands of women in the Eastern Region of Nigeria. Microfinance enables women entrepreneurs to:

  • Have access to basic healthcare for their family
  • Buy nutritious food for the children
  • Send their children to school, pay the school fees and buy educational materials
  • Generally improve living conditions for their families
  • Gain confidence and promote gender equity

Prospective borrowers must show an enterprising spirit, be trustworthy, and have a sound business idea. Upon repayment, microloans are recycled to help other entrepreneurs.