Microcredits (or microfinance) are loans up to a couple hundred euros that are distributed to small entrepreneurs in developing countries. These are primarily female entrepreneurs who want to make an independent living but are not able to borrow at traditional banks, as they do not have collateral, a fixed monthly salary, or credit history. Lendahand does not focus on microcredits or microfinance but on the segment right above it: successful small and medium enterprises. We make use of mesocredits which start at 1,000.
The main advantage of microcredits or microfinance is that they stimulate self-sufficiency by enabling people to provide for their own necessities. Microcredits are based on loans, so the beneficiary is not dependent on donations. Besides increase in income, microcredits leads to better health care. Children can go to school more often and entrepreneurs, such as farmers, artisans, and market vendors, can contribute to the growth of the local economy.
A disadvantage of microcredits is the growing number of commercial providers of loans that only look for financial gains. These parties are not afraid to use brute force to collect collateral. In some countries they overcharge and interest rates are so high that borrowers need to take on another loan just to pay off the first loan. Lendahand emphatically distances itself from such practices and always aims to provide one of the lowest interest rates in the segment we are active in.
Do you have a question? Call: 0031 10 717 18 15Or mail to: firstname.lastname@example.org (response within 24 hours)
Read more about Crowdfunding.