1. The Entrepreneurial Poor Apply for Loans
A traditional bank loan is unattainable for most of the world’s poor. They have no credit. They may own no property. And if they have a business, it’s likely struggling despite long hours of hard work.

Using a variety of strategies such as group-lending through community banks, and cross-guarantees, loans can be provided to people who lack collateral but who demonstrate an entrepreneurial spirit, trustworthiness, a good work ethic, and sound business ideas.

2. World Vision Disburses Microloans
Loan sizes vary from $50 to $5,000. However, most loans are between $100 and $2,000. Loans are usually given to groups of five to 30 business operators who band together for self-administration, mutual encouragement, and accountability. These entrepreneurs cross-guarantee each other’s loans and support each other’s businesses.

Most World Vision loan recipients are women, who use their extra income to benefit their children.

3. Credit Officers Coach Loan Recipients
Credit officers begin coaching clients before they receive their first loan, and continue with regular follow-up throughout the term of the loan. Business coaching includes assistance with accounting, marketing, and managing.

4. Growing Businesses Thrive
With a loan, entrepreneurs start carpentry shops, improve farming, operate flower or weaving businesses, purchase livestock, and run food services. These businesses create jobs and generate additional goods and services—enhancing the entire community.

5. Loans are Repaid
Loan recipients repay their loans more than 96 per cent of the time. As loans are repaid, borrowers become eligible for larger loans. The reasonable interest rate sustains the loan program, while maintaining low arrears and efficient operations.

6. Families Gain Self-Sufficiency
Families who receive small loans report better family health, an increase in their business earnings, and the ability to spend more on food, medicine, and education.

7. Loans are Recycled
Repaid loans are recycled to help an ever-growing number of entrepreneurs to grow their businesses, better support their families, generate jobs, and aid their communities.