How Micro-Loans Work

World Vision micro-loans give hardworking entrepreneurial people the chance they need to rise out of poverty, become self-sufficient and take better care of their families.

In Africa, we do this by providing micro-loans to people in need—most of whom are women. With this money, they start or improve small businesses such as sewing shops or family farms. Just a bit of capital can make all the difference for small businesses in the developing world.

The loans also create a positive ripple effect in the communities that receive them. Thanks to the income they generate, more children and families are getting enough to eat, receiving medical care and becoming self-reliant.

Surprisingly, these loans are very low risk. Fully 98 percent are completely paid back by the end of the loan term. Then the money is re-loaned to others in the community.

These micro-loans go to hardworking people like Esnart Phiri, a widowed mother in Zambia. Not long ago, she was struggling to feed her seven children and four other dependents. Her entire extended family was crammed into one small mud hut. Esnart dreamed of one day earning enough to provide a better life for her loved ones.

Her dream began to come true when she received a small business loan from World Vision Zambia. She used the money to open a small restaurant in her community. As a result of her successful business, her income doubled! Now Esnart is able to support her family and her children have enough to eat. She’s thinking about opening another restaurant, and is saving to build a better home for her family.

World Vision micro-loans are helping to break the cycle of poverty in countries across Africa. By helping World Vision provide more micro-loans with your gift, you are teaching people to believe in themselves, and giving them the tools they need to succeed and become self-sufficient.

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