microfinance – get into business
DESCRIPTION
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 - PowerPoint PPT PresentationTRANSCRIPT
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
• 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.
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
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
We Deliver Micro Credit Products Tailored to fit Small Business needs
Peer Lending
< $5,000
Microloans
$5,000 - $35,000
Conventional Lending
$35,000 +
•The right loan for the right stage of business
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
Access to Peer Loans Based on Repayment Ability
$1,000
$2,000
$3,000
$4,000
$ 5,000
o Start with $1000 Each Group MemberoMinimum 3 month term up to 24 monthso Interest + VanCity Prime + 3%
How Does it Work?Micro EntrepreneurWith Business Idea
Contacts VanCityLearn the Basics of Group
Lending
Forms Peer GroupMinimum 3 Members Complete Workbook
Meets with Vancity$1000 Loan
12 months @ $90
Group Meets MonthlyReport on Progress
Get Next LoanRepay Previous Loan & Group is On Time
Keep The Group Strong to Keep Growing
Peer GroupOr GroupApproval
Access to Capital
$
Business IdeaGrowth
Idea
MonthlyGroup
Support
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