Posts Tagged ‘poverty cause’

Do people pay back microloans?

Wednesday, September 23rd, 2009

Microloans are not simply charitable donations, but actual investments or business arrangements where there is some risk involved. Unlike regular loans though, the people who take out microloans usually can’t offer any typical type of collateral – something like a house or car that the bank could seize if the person defaulted on the loan. What motivates people to pay back microloans is a combination of a desire for a better life and, frequently, a commitment to other people in a lending group. For example, many micro-lenders are a part of a group that commits to paying back the loan. This means that if one person “defaults” the rest of the people in the group are responsible for covering their share. Not only does the borrower make a commitment to the institution lending the money, but also their friends or family. Talk about peer pressure!

Paying back a microloan means more than just fulfilling an obligation – it’s the honor of keeping your word and could mean a successful entrepreneurial venture and more money in the home. That may be why the payback rate is so high for microloans – there is actually a lower default rate for microloans than there is for student loans in the U.S.!  If you think it’s acceptable to take a “chance’ on an American student’s college education, then helping a man or woman provide for a family might be a no-brainer.

What is microfinance?

Tuesday, September 15th, 2009

Microfinance is a way of providing financial services like savings accounts, loans, and insurance to poor people around the world. It is aimed at people who may not qualify for typical financial services because they have limited resources or there are no financial institutions where they live.

By not being able to access financial services that are available to most everyone in more developed countries, these people have little means of improving themselves and their society. The goal of microfinance is to break this cycle of poverty by empowering people who have great ideas, no matter how poor, with the tools and resources to achieve them.

A Poverty Cause is…

Monday, August 10th, 2009

A Poverty Cause is any organization that works with the TILE community to improve the lives of the billions around the world – and here in the United States – who suffer under the crushing weight of poverty. Poverty is a complicated issue, therefore, Poverty Causes address a variety of poverty-related dimensions from access to clean water, education, and providing loans to help the poor start small businesses.

An Education Cause is…

Friday, August 7th, 2009

An Education Cause is an organization that works to improve people’s lives by providing access to educational resources that aren’t available to them for many reasons. An Education Cause might support teachers in high-need areas, provide books and computers or other supplies, or do anything to help people realize their dreams of earning an education and the possibility for a better life. 

An Environment Cause is…

Friday, August 7th, 2009

An Environment Cause is an organization that works to protect and improve the environment by addressing issues like pollution, deforestation, and climate change. 

A Human Rights Cause is…

Friday, August 7th, 2009

A Human Rights Cause is an organization that works to champion human rights around the world. As Martin Luther King Jr. said, “Injustice anywhere is a threat to justice everywhere.” Human Rights causes fight against issues like slavery, abuse of prisoners, refugees from violent conflicts, and human trafficking.