What is microcredit?

Dan Gaidula

Microfinance encapsulates a wide array of products and services from credit to savings that are designed to meet the needs of the World’s un- and underbanked. Whole Planet Foundation focuses on the credit component of microfinance and seeks partners that have a mission to and a methodology that is able to reach the most marginalized groups of micro-entrepreneurs. Some of the key characteristics of microcredit supported by Whole Planet Foundation:

  • Focus on the poorest microentrepreneurs possible, especially women
  • No collateral or guarantees will be required
  • The banking services will be provided to the people as close to their doorstep as possible
  • Loan transactions are transparent at all levels
  • Loan sizes will grow with each loan cycle
  • The borrowers will be free to choose to participate
  • Repayments will be designed in a way that meets the needs of the borrower
  • There will be the fewest barriers to entry as possible for people with little to no assets