Why Do Women Take Out Micro Loans

Higher levels of education for women would increase the opportunity cost for women chosing to work outside the home. The opportunity cost rises because as a women’s education level increases, so does the available positions the woman is qualified for, hence a higher level of income. This means a woman chosing not to work outside the home is forgoing the opportunity for higher education for women to benefit her and her potential to earn higher wages.

By working in factories, women made money that would support them in later aspects of their lives and proceeded to make their lives better. For example, most of the women used their money to save for their dowries so they could one day marry a richer man ("Daughters"). If a woman came from a farm, she would never have as much to give her husband than a woman who worked and got paid. Some women even used the money they earned to pay for an education to better themselves and have a successful occupation one day with more pay. Additionally, with the money they saved up, the women could enjoy their lives by using their wages to “purchase pretty, store bought clothing” (“Daughters” 8). Lastly, the women could even use the money to support themselves and their families (including children, a husband, and

In both developing and emerging economies, microfinance has vastly and increasingly been seen as one of the most important means for enhancing the lives of the poor and therefore a major tool for economic and social development mostly in rural areas. Lately, contrary to this widespread belief, critics have raised eyebrows against this growing popularity of microfinance as a major tool for enhancing economic development. Contrary to belief, they are of the opinion that microfinance is a ‘make-belief’ that is hindering economic and social development rather than enhancing it.

Micro enterprising has helped African women in many ways. New machines make it easier for them to work. They raise money to support their large families and themselves. Some also hire workers, which creates more jobs. Micro enterprising also gives women more opportunities to work and inspires them to start their own business. They help their economy little by little. But most importantly, it gives them pride for being a women; one that went from unable to do anything to working and saving their family.

Poverty has stricken many developing nations. However, there are many ways to limit things like this from occurring, micro-loans being one of those things. It is apparent that women in developing countries are empowered by micro-loans. Micro-loans are a small amount of money given to small businesses. Micro-loans help make women more independent and help them not rely on their husbands for money. It helps these women in poverty get their kids and themselves an education with the money they receive. Additionally, micro-loans make it possible for women starting a business, in order to make more money. There are many benefits for women receiving micro-loans.

For Victoria’s case, she needs the money to buy more potatoes and quinoa to make sure her shop has all the proper vegetables (Kiva.org). If Victoria can keep her shop well stocked, she may attract more customers and make more money. By earning more money, Victoria can improve her quality of life. According to Plan Canada “microfinancing can lead to improved access to clean water and better sanitation while also providing better access to health care” (plancanada.ca). Research shows that microfinance loans are better suited for women because they are less likely to miss payments on their loan and it helps them feel empowered (plancanada.ca). By lending to Victoria, she will feel empowered and will be able to support herself and her family. Also, because she is a woman, she is less likely to miss

Micro credit is the process of helping the “poorest of the poor” obtain loans. Since big time banks rarely help people who need help acquiring loans, micro credit is another source that makes it possible for the lower class to achieve that. They focus on they call the “real economy,” where they are on personal relationships with their clients. They want them to succeed and help their clients change their own life. Compared to the big banks, they are not looking to make huge amount of interest back off their loan (paper chasers).

Microfinancing produces many benefits for poverty stricken, or low- income households. One of the benefits is that it is very accessible. Banks today simply won’t extend loans to those with little to no assets, and generally don’t engage in small size loans typically associated with microfinancing. Through microfinancing small loans are produced and accessible. Microfinancing is based on the philosophy that even small amounts of credit can help end the cycle of poverty. Another benefit produced from the microfinancing initiative is that it presents opportunities, such as extending education and jobs. Families receiving microfinancing are less likely to pull their children out of school for economic reasons. As well, in relation to employment,

Some countries have social stigmas that look down upon outsiders or women doing anything other than housework and raising a family, but putting more people to work not only provides more food put it also provides more money for their families. “The women have made progress in fighting hunger and poverty within an area characterized with high levels of food scarcity de to its semi-arid feature, attracting low levels of rainfall,” (“Feature: Kenya’s women fight hunger, poverty with bee products”). Members of villages have found that allowing their women to work outside of the home is helping especially in areas that have droughts and there crops die. A vice chair member in kenya has said “It is a good thing to see women do something to escape

Background: For years since the rise of microfinance in the contemporary discourse of development, Chotacredit, a nationwide Microfinance institution, has been playing a leading role in the XXX region in providing accessible finance to low-income households as a catalyst for employment creation, poverty reduction, and gender equality. However, in recent practice, Chotacredit has found that the current loan-signing rule which requires co-signature by spouse may potentially limit female participation in the microloan program and program impact. A few valid assumptions have been made: 1. As currently, a loan contract must be co-signed by both husband and wife, and a significant share of the husbands of our female clients are truck drivers, the

Firstly, concerned about the vulnerability of young women (rely solely on a men and/or engage in high-risk behaviors and activities such as prostitution) and convinced on their potential to develop economy, I co-founded the social venture IE2F which overall objective is women self-reliance and financial independence in order to improve their livelihoods

Literature in this field emphasizes the idea that although these programs directly contribute to the income and thus empowerment of women they are not a cure-all solution to women’s poverty and women face major developmental and societal challenges, particularly in South Africa given the events of the Apartheid. Literature within this field highlighted that improving gender equity and improving the economic power of women would enable long-term development and success for women (Chant, 2014).

Lastly, our society will be better. With their talents, women bring about big profits to their companies, thus contribute much to their countries’ development. Obviously, our modern world is progressing faster thanks to women’s increasing contribution. Moreover, gender equality does not only benefit women but enhance the civilization as well. Therefore, a proper percentage of high-level jobs for female labor are essential to a developed society.

Over the last 15 years microfinance institutions (MFIs) have rapidly expanded. The number of poor families with a microloan has grown from 7.6 million in 1997 to 137.5 million in 2010. Microcredit has generated significant confidence for fast poverty alleviation; creating a multiplier effect leading to the eradication of poverty and hunger, universal primary education, the promotion of gender equality and empowerment of women in developing nations. It can be argued that microcredit is a “win-win” opportunity, in which the poor are given the financial capital and

Half of the world’s population is living below or near poverty line, which is 2 or less then two US dollars. To encourage the development and eliminated poverty UN have announced their goal of millennium to eradicate poverty till 2015. Pakistan is 87th poorest country of the world and 23% of its population is living under poverty line, which is US$ 1 per day. Micro finance is a method to alleviate poverty and empower, and raise the living standard of poor people. Micro finances are provided by the MFIs, who address the financial needs of poor people, neglected by the conventional financial institutions. Micro financial activities are as old as 200 B.C, which were started in India in shape of moneylenders, chit funds and merchant banks.