Microfinance

Microfinance gives people in poverty access to small loans that conventional banks wouldn't grant – because the amounts are too small and the borrowers too poor.

How it works:

• Loans of €50–500 (sometimes up to €5,000)
• Often granted to women (higher repayment rate!)
• Group loans: 5–10 people vouch for each other
• Used for: sewing machine, market stall, livestock, seed, crafts

How you can invest:

• Microfinance funds: e.g. "Invest in Visions" (from €100, approx. 2–4% return)
• Direct platforms: Kiva.org (from $25, interest-free – you get your money back, without a return)
• Sustainable banks: GLS Bank and Triodos Bank invest part of their deposits in microfinance

Repayment rate: over 95% – higher than many Western consumer loans!