Microfinance- a general term to be describe financial services to low-income individuals or to those who do not have access to typical banking services

Microloans- loans people money to help them get a kickstart in a small business that they think will be beneficial to their own village or town

• Microloans also helps investments in infrastructure, education, and legal reforms

What does it do?

• Provides people who don’t have the money to get a loan to start a business, pay for medical attention, pay for schools etc.
• Helps small businesses start up and stay running. This helps the local economy it also helps pay for insurance
• Is an opportunity for the less fortunate people to have stuff they wouldn’t be able to afford or start up
• Allows poor people to improve their homes

Developing countries

In most developing countries most people are poor, but it is the poor people who are least likely to be helped by regular banks

Problems in developing countries that can be helped by microfinance-

• Malaria
• Drought
• Clean water

Malaria - life threatening disease transmitted by mosquitos. It was once thought that the disease came from fetid marshes. Every year it causes 655,000 deaths. Every minute a child dies from malaria 

Bill Gates: 

• is a philanthropist
• Bill and Melinda gates donate billions of dollars to help cure diseases and help sell mosquito nets

• Microlenders is an organization that makes business loans to individuals who are not able to get money from traditional lenders
• Charge higher than average interest rates. 
• Their maximum loan is usually 25,000 or less
• People who receive microloans are usually individuals in poverty or in development zones in the US or who live in developing nations.

Ways Microloans can help: 

•  helps expand their business
•  the business can have a positive affect on the community around them
•  allows small business loaners access to insurance
•  create choice, allows people to switch professions and work in a field that interest them or interest them more than their last job