Many microentrepreneurs and small-scale producers cannot afford the upfront costs associated with productive asset purchases and do not meet the lending requirements of traditional banks. Small, working capital, microfinance loans are typically not designed for fixed asset purchases.
Global Partnerships (GP) invests in microfinance institutions that provide tailored credit to purchase productive assets for the households we serve.
WHO IS SERVED?
The target demographic is microentreprenuers and small-scale producers living on less than $5.50 PPP/person/day.
WHAT IS DELIVERED?
Tailored, individual or group loans to finance a productive asset (such as a motorcycle for self-employment as a motortaxi driver) from a vetted supplier, underwritten for productive use along with basic credit training. Clients may also receive one or more of the following, as essential to the productivity of the asset:
- Product warranty and customer support
- Specialized training
WHY IS IT IMPACTFUL?
Household net incomes increase due to:
- Cost savings
- Revenue enhancement