Our micro-loans fund break the cycle of poverty through economic empowerment
We work with dozens of microfinance institutions worldwide through our micro-loans fund "MicroBuild" and the expertise we provide them to help as many people as possible. Thanks to micro-credit, we enable families and communities to fight housing poverty.
Why is micro-finance so important?
Micro-loans are a key tool in financial inclusion: giving socially excluded population access to financial services. With 800 million people living in urban slums and 40% of the population on less than $2.50/day – that’s a lot of people who often don’t have access to banks.
- Two billion people lack access to regulated financial services (e.g. credit, savings and mortgages)
- Less than 10% of households have access to mortgages in many countries where we work
Building homes step by step
In many developing countries, traditional homebuilding is simply not an affordable solution – even for the local middle class. Housing microfinance is a tool for families to improve their living conditions gradually. Microloans have relatively short repayment periods, small loan amounts and little or no collateral required.
Typically, families use them for roof reconstruction, adding toilets and running water, installing heating and better insulation. In developing countries, 70% of all housing investment happens through incremental building (gradually improving their home) rather than new builds.
How microfinance works
Microfinance is a great way to make very small loans (e.g. £5 or £50) accessible to the poorest people on the planet. Just the same way that we go to the bank to borrow, except this time it’s a nonprofit loan. The aim is only to serve more and more people.
We do not issue microfinance loans ourselves, but collaborate with partner microfinance institutions. While partners provide loans, we provide training to homeowners on financial responsibility and managing their loans. We also offer construction assistance and evaluation of the quality of work completed.
How incremental building works
A typical problem in many developing countries is not the lack of housing but decay and dilapidation of the current housing stock. Microcredit helps solve this situation by gradually improving homes.
Maximise your donation
Donations are leveraged by a ratio of 1:10 by the MicroBuild Fund and provide sustainability by supporting technical assistance to partner institutions and families. Every £50 we receive can support an entire family or an average of 5 people with improved shelter and technical assistance.
This means that on a bigger scale:
- £50,000 would enable 1,000 families to get home improvement loans supporting over 5,000 people.
- £10,000 would enable 200 families to get home improvement loans supporting over 1,000 people.
We have enabled more than $50m of affordable finance to flow into the market to help more than 50,000 families in need across 30 countries.