Microfinance : a power vehicle for poverty reduction

In Burkina Faso, our schemes are helping women to make pots for market

Through small loans and saving schemes, Plan's Microfinance programs provide opportunities to the very poor with a special emphasis on women.

These women would typically not be able to borrow money from commericial banks so they are forced to borrow from loan sharks who charge exorbitant interest rates.

Plan offers women financial training and also encourages them to form small savings groups and co-operatives. Once a savings pattern has been established, the group can take out their first loan. Loans are generally repaid in weekly installments.

If any member of the group defaults on their loan agreement, the other group members are responsible for paying back her portion of the loan. As the women establish their credit history, they become eligible for larger loans.

Microfinance allows women to invest in small businesses and farm improvements. The money they earn is invested back into their family which provides opportunities for their children to attend school and escape the poverty trap.



Learn more about Plan's Microfinance programs