Microcredit is a low amount credit bearing interests granted to microentrepreneurs who do not have access to traditional banking services.

This type of credit makes it possible for people who are excluded from the banking system as we know it to create or develop an income-generating activity. It can be granted to individuals as well as groups – each member of the group being a guarantee for the other

Microcredit, a weapon in the battle against poverty

Microfinance makes it its mission to break the cycle of poverty through an offer of both financial and social development tools aiming at the improvement of the recipients’ living conditions.

Muhammad Yunus, gave its impulse to microcredit by creating the "Bank for the Poor" in Bangladesh (Grameen Bank). He proved that lending low amoounts of money can durably change the life of the poorest people.

The impact of microcredit can be measured in terms of the increase in the recipients’ economic power and social inclusion and the reduction of their vulnerability to economic shocks, but beyond that, it should be understood as a prodigious tool in the service of empowerment.

 

Microcredit, a tool in the service of empowerment

Microfinance is not charity. It consists in offering financial and non-financial services to populations that are excluded from the traditional banking system and give them the opportunity to participate in the global development process. Microfinance is not just about financial support and also provides the recipients with non-financial services such as training programmes, business advice, professionalization and consciousness raising workshops about diverse topics.

On Babyloan, you can act in favor of a social microfinance by lending money to the person you want.

The mechanism is easy: you choose a project in one of our countries of action, you make a loan from a minimum of € 10 and then you are repaid each mont from a part of the amount. Once you have been completely repaid, you can withdraw the money or lend again.