Economic Empowerment for the poor
Creating a vibrant community of micro-bankers for the poor, to economically empower them to escape poverty.
The need
The demand of microcredits from people living in poverty is estimated at 275 billion dollars. Despite the amazing success of microcredits in pulling people out of poverty, only 10% of this demand is covered. 1x1microcredit seeks to engage millions of people in investing in microcredits to meet this demand.
“Despite being one of the most successful instruments in the fight against poverty, microcredits are only available to 13% of the people requiring them. With a repayment rate of 99%, this does not make any sense.”
Enrique Iglesias, Iberoamerican Secretary and former President of the Inter-American Development Bank
1x1microcredit: A solution
Inspired by the fund-raising campaign of Barack Obama during his presidential campaign, 1x1microcredit allows people to invest small amounts of money – from 25€ - directly in microcredits for people living in poverty.
What type of loans?
The demand for microcredits are mainly for:
- Self-employment, business development: Most loans are used by entrepreneurs or micro-enterprises to develop their businesses so that they become economically self-reliant. The poor normally generate income through agriculture, retail, food, textile, arts or in services.
- Vocational training: Some loans provided to people who want to learn a job.
- Family emergency: A few loans are provided to families in case of a health emergency .
- Improving quality of living: Some loans are also provided to improve housing basic arrangements and other essential elements that would reduce vulnerabilities to poverty.
Whatever the type of loan, our partners in the field make sure that the borrowers have a plan and the capacity to return it within the given timeframe.
Using the power of Web 2.0
The beauty of 1x1microcredit is that it is:
- Personalised: it allows direct connection and the investment one to one, from a social investor to an entrepreneur in poverty.
- Immediate: users can choose the projects to support, and immediately invest in them.
- Engaging: it allows people to participate in sharing their experiences, posting their opinions, videos, pictures, etc.
- A learning experience: it allows to better understand the situation of people living in poverty anywhere in the world, and participate in supporting them in their efforts to become economically empowered.