Microcredits
1. Introduction
The aim of the following paper is to value the impact that microcredit’s have as an instrument against Poverty.
It presents the international impact that microcredits have had. The international community has realized that it is necessary to bring resources to the neediest people. The figure of microcredit has a double function: it generates social benefits and teaches people to understand that their work can improve their standard of living.
As popular or innovative can these programs, some politicians or rulers can spread the idea that microcredit is a tool that eradicates poverty, but rather must realize that they are ways to help eradicate and that its use can be exponential development lever.
It presents the importance of these plans as engines of development, the government's responsibility as regulator and generator programs, also the importance of control and proper use for those efforts are coordinated and not duplicated.
Finally, conclusions are presented respect for these programs, which can help generate wealth in places where it is needed.
2. What is a Microcredit?
Microcredit, also known as microfinance, is the provision of a variety of financial services such as deposits, loans and insurance to poor families who do not have access to the resources of formal financial institutions. The loan is used to invest in microenterprises, and to invest in health and education, improve housing or dealing with family emergencies.
Moreover, microcredit is not limited only to provide financial services, also provides training in money management, and touches on aspects such as leadership, confidence, self-esteem, education and how to manage a microenterprise. And while some programs are concerned exclusively for savings and credit, others have this element as part of a package that also includes activities related to health, family planning and the organization of production and distribution of goods.
“Micro finance goes
The aim of the following paper is to value the impact that microcredit’s have as an instrument against Poverty.
It presents the international impact that microcredits have had. The international community has realized that it is necessary to bring resources to the neediest people. The figure of microcredit has a double function: it generates social benefits and teaches people to understand that their work can improve their standard of living.
As popular or innovative can these programs, some politicians or rulers can spread the idea that microcredit is a tool that eradicates poverty, but rather must realize that they are ways to help eradicate and that its use can be exponential development lever.
It presents the importance of these plans as engines of development, the government's responsibility as regulator and generator programs, also the importance of control and proper use for those efforts are coordinated and not duplicated.
Finally, conclusions are presented respect for these programs, which can help generate wealth in places where it is needed.
2. What is a Microcredit?
Microcredit, also known as microfinance, is the provision of a variety of financial services such as deposits, loans and insurance to poor families who do not have access to the resources of formal financial institutions. The loan is used to invest in microenterprises, and to invest in health and education, improve housing or dealing with family emergencies.
Moreover, microcredit is not limited only to provide financial services, also provides training in money management, and touches on aspects such as leadership, confidence, self-esteem, education and how to manage a microenterprise. And while some programs are concerned exclusively for savings and credit, others have this element as part of a package that also includes activities related to health, family planning and the organization of production and distribution of goods.
“Micro finance goes