Versions of the Bangladesh experiment have succeeded in scores of nations around the world. Many borrowers belong to membership groups. Delinquent loans become the responsibility of the group. First time loans are low. New, higher loans depend on repayment of earlier loans.
Clients get access to training and group support.
Interest rates are the same as commercial bank rates. Success is measured by payback, not by number of loans. Boston is one of dozens of U.S. cities where micro-loans are creating jobs and changing lives. Subsequent loans have gone to purchase office machines and other equipment to enable her business to grow. Leonor says 150 small businesses like hers also have received micro-loans to expand their operations.