CARE International UK, an affiliate of the aid agency CARE International, has launched www.lendwithcare.org, a microfinance website through which the public may provide funding to CARE’s partner microfinance institutions. The website’s mission is to raise money to assist individuals in the developing world reach economic independence by providing loans to start or improve small businesses.
The microloans advertised through the website are initially granted by a partner microfinance institution (MFI), which approves and provides the initial loan. The MFI then provides the borrower profile to CARE, which posts the profile to the website. The retail lender can review borrower profiles on the website and choose the entrepreneur they would like to support, however, once the total funding requirement of an entrepreneur’s loan request is met by either a single lender or group of lenders, the total funds are transferred to the MFI, which uses the money to fund a new loan. The minimum loan amount is GBP 15 (USD 23), and although repayment is not guaranteed, the retail lender can usually expect repayment within a year. The microfinance institution charges interest on the loan, but this interest will not be repaid to the retail lender.
Mr Ajaz Khan, CARE’s Microfinance Advisor, states “Lendwithcare will allow more entrepreneurs in developing countries to access loans to establish and expand their businesses…as the microfinance industry becomes more commercial, mainstream and oriented towards profit, there is the real danger of mission drift as microfinance providers focus on less poor clients. By providing our partner microfinance institutions in the field with a relatively constant, secure and cheaper source of funding, we can ensure they maintain their original focus on poorer entrepreneurs” [1].
CARE International is a Switzerland-based, global, non-governmental organization with poverty reduction programs aimed at developing women’s economic capabilities. CARE International reported total assets of USD 952 million at June 30, 2009.
By Jennifer Shevock, Research Associate
About CARE International:
CARE International (CARE) is a Switzerland-based global non-governmental organization with poverty reduction programs aimed at developing women’s economic capabilities. Founded in 1945 and originally established as a means to send supplies to post-war Europe from America, it has evolved into a large-scale humanitarian organization. As of June 30, 2009, CARE supported 800 poverty-fighting projects in 72 countries to reach a reported 59 million people. CARE reported total assets of USD 952 million as of June 30, 2009.
Sources and Additional Resources:
[1] Email from CARE International UK to MicroCapital
Website: http://www.lendwithcare.org/
MicroCapital Universe: CARE International (CARE): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CARE+International
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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