One microcredit loan is not a silver bullet that ends poverty immediately. It will, however, along with subsequent business expansion loans, help her to provide better nutrition, healthcare, housing, education and schooling to her kids, who will then be better prepared to escape poverty. Ending poverty is a generational endeavor. …

Whole Planet Foundation does not work with government-run MFIs (microfinance institutions), as we’ve found these can be poorly run and corrupt. We’ve found great success by working with MFIs with no government affiliation.

When governments ban microloans to the poor or heavily regulate interest rates this only deprives the poor of access to capital that could help them live better lives and drives them into the hands of the local moneylenders whose interest rates can run into the thousands. Loan sharks use brutal …

The strength of microcredit is avoiding repayment problems in the first place. The system is designed in such a way that risks are mitigated throughout the process. Key elements from some of the most effective organizations include: Selecting clients that are investing in a business, not used for personal consumption …

Whole Planet Foundation has developed our own quality standards for our microfinance partners which are based on industry best practices. We proactively search for like-minded MFIs that are able to grow and serve more microentrepreneurs. Our Field Team first conducts desk due diligence to identify potential partners. After reviewing relevant …

Interest rates are determined locally by five main factors.  Here they are: Rate of inflation in the country Double digit inflation is not uncommon in developing countries.  Interest rates have to cover inflation. Cost of capital This refers to cash in the capital market (banks etc) that they use to …

Sometimes interest rates seem very high by Western standards, but the highest rates inevitably come from moneylenders who are traditionally the only ones willing to lend to the poor. Risks can be substantial, but the microentrepreneurs are usually good at repaying loans that are appropriately sized for their capacity. Whole Planet …

Whole Planet Foundation does not set interest rates. Interest Rates charged by Whole Planet Foundation microfinance partners in the field are impacted by a number of factors and vary by country.  We work with MFIs that have agreed to keep the interest as low as possible while covering inflation, cost …

In communities void of jobs and based on the informal economy, credit is a a direct means for the poor to improve their family’s lives. Whole Planet Foundation focuses on supporting access to more opportunities in the form of microcredit with world-class organizations that deliver much more than a loan. …

An MFI is a microfinance institution that provides microfinance services. We partner with local MFIs that have developed an approach to serve microentrepreneurs in a way that is aligned with their reality. We refer to this as a pro-poor approach to microfinance.