Micro credit is the loaning of small amounts of money to the ultra poor who have no collateral, no assets, are unemployed and have no credit history. They cannot meet the most minimal criteria to qualify for traditional credit. Micro credit is a part of micro finance, which is the provision of financial services to the very poor; apart from loans, it includes savings, micro insurance and other financial innovations.

The PSDI micro credit program is an opportunity for poor, illiterate women to learn about money management, assets, asset building and mandatory savings. Small groups of 12-25 women form their own bank, under the supervision of a social worker, that allows members to borrow small amounts which are repayable in small weekly increments, along with a mandatory fixed savings amount which funds the bank.

Each woman has her own passbook in which her transactions are recorded by the social worker. When a loan is repaid, a second larger loan may be taken out but requires that at least 10% of the total loan amount be in her savings account and a third loan requires 15% in savings. Loans range between US $3 and $150. There are 70 Taka to US $1.


Donation Needed:

Average loan to support an individual entrepreneur             $60.00