1 / 12

Microfinance – Get Into Business

Microfinance – Get Into Business. Innovative Access to Financial Services for low income entrepreneurs. A Revolutionary Idea from Far Away. Grameen Bank 1970’s founded by Mohamed Yunus $27 total loans for 40 women-basket weavers to buy their materials and startup their own microenterprise

kevin-roberts
Download Presentation

Microfinance – Get Into Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Microfinance – Get Into Business Innovative Access to Financial Services for low income entrepreneurs

  2. A Revolutionary Idea from Far Away • Grameen Bank 1970’s founded by Mohamed Yunus • $27 total loans for 40 women-basket weavers to buy their materials and startup their own microenterprise • No Collateral – formed a group to jointly guarantee their loans • Poor people pay back loans 99% of the time • Escape the Poverty Trap • Today, 2 million loans a year • 10,000 members per month out of poverty • The idea is simple, give people a Hand Up, not a Hand Out.

  3. Microfinance in Canada • Handful of Canadian Institutions use Idea • Vancity’s own Peer Lending Program over 7 years old • Focus on low income entrepreneurs, marginalized groups, new immigrants • Increase access to financial services • Vancity helped over 600 entrepreneurs get started! Four Women Un Gato – A Vancity Peer Lending Group

  4. Why is Vancity Involved? • Our Mission is “Working with people and communities to help them thrive and prosper” • Canada’s largest Credit Union with $10.5 billion in assets & 340,000 members, 42 branches throughout the lower mainland • Community Leadership – We share 10% profits community & Provide Access to Financial Services to people who cannot get it • Investment into our community – serving as a catalyst for the self-reliance and well being of our community and membership • A Commitment to increase access to financial services from savings, home ownership to startup business loans

  5. We Deliver Micro Credit Products Tailored to fit Small Business needs • The right loan for the right stage of business Conventional Lending $35,000 + Microloans $5,000 - $35,000 Peer Lending < $5,000

  6. Vancity’s Peer Lending Program Group based lending • Access to Business Credit based on group Collateral • An opportunity to build or improve their credit rating • A support network of business peers

  7. Access to Peer Loans Based on Repayment Ability $ 5,000 $4,000 $3,000 $2,000 • Start with $1000 Each Group Member • Minimum 3 month term up to 24 months • Interest + VanCity Prime + 3% $1,000

  8. How Does it Work?

  9. Keep The Group Strong to Keep Growing

  10. Other Community Business Loans • Micro-Loans • $5000 to $35,000 Business Loans for Experienced Entrepreneurs with Good Credit History and a Formal Business Plan • Advice and Business Loans for Entrepreneurs with disabilities • $5000 - $35,000 Business Loans for Entrepreneurs with disabilities with one on one assistance

  11. Questions ? Get Started • Form a Group • Complete the Workbook • Lets Meet

  12. Vancity Community Business Solutions Contact: peerlending@vancity.ca

More Related