Page 6 - Micro Credit

HANDS WITH HANDS
www.handswithhands.com 6
Where does
Microcredit occur?
l Rural areas
l Urban areas
l Emerging & Developing
countries (e.g. Bangladesh,
India, Columbia, Peru, Nepal,
Mongolia).
l Restructuring countries (e.g.
Eastern European countries;
Ukraine, Bosnia, Azerbaijan).
l Developed countries – urban
poor unable to access standard
banking due to poor credit
rating (e.g. USA, Germany, UK).
Basic Micro Credit Model
INVESTOR
l Deposit of Funds
l Donation of funds or
partial donation
l Repayment of
deposit
l Interest paid on
deposit
MFI
l Loan delivery
l Administration
l Accounting
l Management
of client &investor
relations
MC CLIENT
l Recipient of Loan
l Investment in
income producing
endeavors
l Income production
and capital growth
l Repayment of loan
l Plus interest
payment