Three billion people exist on less than €2,-  per day. Drought, floods, accidents, and illnesses threaten their daily life, or their homes and possessions.

A way out of this vicious circle of poverty, would be the establishment of small enterprises. However their start-up phases require some kind of investment in the majority of cases. Bank loans are however not granted to those with small incomes, an exeption being the route to the local loan-shark with their extortionate rates of interest. A vicious circle of poverty, hunger, debts, and thence more poverty is difficult to break. Countless self-support schemes remain untapped without some form of start-up capital input.

The village bank

A way out of this dilemma could be mini-loans. Here we understand a broad spectrum of financial services for poorer people. Alongside real mini-loans, savings programmes, insurance, & bank-transfer systems, relative to the needs of low-income persons are required.
Mini-bank loans to encourage start-ups need only be in the realms of 5 to €1000,-
Up to now there are not many so-called micro-finance organizations which make a profit. Most financial organizations cannot exist without continous contributions, or subsidies in the form of donations, or low interest re-finance schemes.

More loan-security

However mini-loan institutions do exist which accompanied with donation contributions, do
realize a profit. One has learnt from the failures of the 70ties & 80ties, the security of the loan 
system has been so improved, so that loans can be made to the needy, which are then repayed by them.
Although thes small-businesses do not possess the usual bank-security values, these can be compensated with the following ideas:
° 1 The issueing of group loans, which are guaranteed by the whole group.
° 2 More loans to be made to women, who as responsible mothers, are often seen to be less of
      a credit risk.
° 3  A carefull analysis of re-payment possibilities of the loan-taker should be in place.

The successful mini-loan organization can reduce re-payment problems through a close controll of it’s given loans. This shows that poverty need not go hand in hand with missing credit worthyness.

Countering poverty with mini-loans

For many groups whose way to a formal bank remain barred, these financial means can offer an important contribution in escaping from the poverty circle.
Furthermore such functioning small financial markets encourage the economy in general. This is a pre-requisite in the battle against poverty.
“These loan systems are not a form of alms giving, but a way to enable low-income  households to achieve the same rights and services, as are available in other social stratas.
It must be recognised that poor people are the solution, and not the problem”, said Kofi Annan, the former UN General Secretary.

The Deepwave-Project MANGREEN, has allready contacted several local Indian mini-bank systems.
Regarding world-wide small & smallest loans, we have been working together with the EuroFinanz Consulting Ltd (EFC), since the summer of 2009, who are offering these funds.

Should you be interested in the world of  micro-finace and it’s contributions, then please contact Ingo Rieckmann, Mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it (code: MANGREEN9

Wenn Sie Interesse an Mikrofinanzen haben melden Sie sich bei unserer
Kontaktperson:
Ingo Rieckmann, Mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   ( Stichwort MANGREEN)

 

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