WASHINGTON, DC – More than 128 million of the world’s poorest families received a micro-loan in 2009 – an all-time high, according to a report released by the Microcredit Summit Campaign.
Assuming an average of five persons per family, this means that loans to 128 million poorest clients affected some 641 million family members, which is greater than the combined population of the European Union and Russia. Microloans are used to help people living in poverty start or expand a range of small businesses, such as selling basic staples, producing handicrafts, and delivering cell phone services to remote villages.
“Microcredit has very effectively lifted millions of poor women and their families out of poverty,” said US Ambassador-at-Large for Global Women’s Issues Melanne Verveer. “With the 100th anniversary of International Women’s Day being celebrated on March 8th, it is gratifying to see that over 81 percent of the very poor who received microloans were women - that is more than 100 million people. Women entrepreneurs are one of the smartest investments in microfinance. Not only have they shown strong returns in the success of their businesses, but they consistently have demonstrated high loan repayment rates and they re-invest in their families and their communities.”
Overall, more than 190 million people had a microloan in 2009; however, the campaign focuses on the 128 million poorest. In the 12 years since the campaign’s founding, the number of very poor families with a microloan has grown more than 16-fold from 7.6 million in 1997 to 128 million in 2009. The report includes data from over 3,500 institutions with more than 93 percent of the information collected last year and verified by a third party.