When a loan is repaid, the funds are given to the next person, and then the next.
The original $1 investment is multiplied several times over eventually transforming entire communities.
We believe micro-loans are a sustainable way to alleviate poverty, and we help sponsors and donors make a difference in the lives of families who struggle to live on less than $2 a day.
Through GFM’s microfinance program thousands of families are now coming out of poverty — with dignity – as they start or develop a business through the help of a micro-loan. Once the small loan (that buys a goat, cow, or sewing machine, etc.) is repaid, the funds are then given as a loan to the next entrepreneur. The money is continually recycled, like a gift that keeps on giving.
We’ve distributed over 2.5 million dollars in micro-loans to thousands of entrepreneurs who are eager to work hard in order to improve their lives and provide for their families. About 98% of these loans go to women.
How does a micro-loan transform lives?
See the diagram and testimonies that follow.
Sheuli started a poultry business with her micro-loan, and now she owns over 1,100 chickens that produce more than 800 eggs per day! She also helped her village to come out of poverty.
Eight years ago, Sheuli and her new husband were struggling to put enough food on the table. She dreamed of running a poultry business, but without collateral, she was unable to get a loan from a traditional bank.
Although Sheuli had only an elementary school education, she enrolled in our two-month entrepreneur-training program where she learned how to manage finances and develop a business plan for her goal of starting a poultry business.
Sheuli then received an initial loan of about $100 to buy a few chickens. She steadily grew the business while taking out a couple of additional, larger micro-loans. Her family also grew as she bore 2 children, and she could now provide them with consistent, nutritious meals.
Today she has over 1,100 chickens producing more than 800 eggs per day! Not only was Sheuli, a Muslim woman, empowered, but she is helping to provide a brighter future for her children and her community.
She taught others in her village how to start poultry farms with our help. Today over 80% of the families in her village have risen out of poverty with help from the micro-loan program.
Sheuli came out of poverty with dignity, but her blessings did not stop there. Through the relationship of trust built with us, she has also learned of and experienced eternal hope.
What types of projects are micro-loans used for?