Microcredit is an important tool for empowering women in developing countries. Therefore it is not surprising that the majority of borrowers are female. Among the poorest borrowers, they constitute 85%. Multiple studies have encouraged the idea of lending mainly to women. It appears that women invest their funds more conservatively and therefore repay more reliably.
Positive Impacts Through Lending
Microcredit supports women in increasing their contribution to the household income. This leads to improvements in their position within the family hierarchy. Consequently, participants become more confident and self aware. As women utilize their incomes to support their children, a micro loan improves the living condition of the entire household. The World Bank even argues that a dollar lent to a women has a larger impact than a dollar lent to a man.
What are the results in our projects?
We can confirm the above results in our programs. Catherine from the Philippines became independent from her violent husband after she opened a small store and later on sold rice. This allowed her to separate from him as she was not dependent on his financial support anymore. Glenda, also from the Philippines, found a job abroad due to her increased self awareness. This development also allowed her to break up with her gambling addicted husband, who wasted away the entire family income. Angelia from Indonesia now contributes a larger portion to the family income which also increased her influence on household matters. Before, she even needed her husbands permission in order to participate in our program. The same development could also be observed on Risa, who opened a small store and expanded it using a micro loan. As she now contributes more than half of the family’s income, she enjoys an equal position in the family.
All in all we can see that borrowing money and consequently becoming economically active, greatly boosted the confidence and independence of participants.
Therefore, your donations lead to empowerment of women and allow them to live a better and more independent live.