Microloans create choice. They allow people to switch profession and work in a field that interests them, or at least interests them more than their last job. The loans also allow them to develop a new skill.
The fundamental benefit of a microloan is that it gives borrowers access to cash. Microfinance clients typically cannot open a commercial bank account. Even if they could it’s likely that the nearest ATM (if indeed ATMs readily exist – in Haiti they do not) would be miles away: many of the clients I visited lived in rural communities devoid of common amenities.
Material possessions aside, imagine the difference between being unable and being able to pay for your child’s education. I have witnessed microloans making that difference.
The Pros and Cons of Microfinance Part 1 by Nick Hamiton, KF13
