Microloan Program
Background
Microloans are currently one of the hottest topics in global philanthropy, particularly since the award of the 2006 Nobel Peace Prize to Bangladesh's Grameen Bank.
The idea of microcredit is to grant small loans to impoverished entrepreneurs who lack the means of obtaining traditional credit. Many of the loan recipients are unemployed and have no collateral. Microloan programs worldwide have successfully helped many poor people, particularly women, start small self-employment projects and lift themselves from poverty.
Our Microcredit Offerings
Program for a Better Peru has initiated a pilot program to offer microcredit to entrepreneurs in Arequipa and surrounding villages. Our loans bear zero interest and the repayment schedule is flexible. We ask only that loan recipients make a good-faith effort to grow their business and repay the loan eventually, so that we may recycle the repaid capital to fund other loan recipients.
In January 2007 we began soliciting microloan applications. We have already awarded several loans, and we continue to review applications on an ongoing basis. Our selection process considers the following information about each applicant:
- Requested loan amount
- Viability of proposed business/self-employment project
- Sex or disability status of applicant(s) -- loans are preferentially given to women and/or individuals with disabilities
- Number of applicants in partnership
- Number of dependents who would benefit from applicant's increased income
Microloan Recipients
Please visit the following pages to learn more about past recipients of our microloans.
July 2009: CONADIS memberApril 2008: Pascual Alca
April 2008: Mario Yaguno
June 2007: Felipe Taco Zamata
May 12, 2007: Clara and Maria Sanchez
