An offshoot of the development charity Care is working with co-operatives to offer opportunities to ‘transform a life with a £15 microloan.’
In a presentation at the Big Ideas Pod, Lend with Care executive Nancy Thomas showed how, instead of giving to charity, investors can contribute towards an interest free loan for carefully selected businesses.
The scheme has been operating for two years, and The Co-operative Group joined as a partner last year
Care’s microfinance partners – mainly co-operatives and credit unions – provide small short term loans, with an average term of 6-12 months, to support everything from hairdressers and market stallholders to poultry breeders and mechanics. They also offer larger agricultural loans over 12-18 months.
Care, which is has been working in microfinance in developing countries for over 30 years, has introduced it in six countries so far.
Investors can choose which enterprise they want to finance via the Lend with Care website, which gives details of approved business, the individuals behind them and the amount they need.