Micro loans reverse poverty cycle
Wednesday, April 17, 2013
With an average loan of about $150, more than two million families in India, Indonesia, The Philippines, China and Ghana are leaving poverty behind thanks to Opportunity International Australia. Last year, the organisation provided more than $5.5 million for a variety of programs including small loans; 97 per cent were repaid on time.
“A major incentive for clients to repay loans is their ability to secure subsequent, larger loans,” Opportunity chief executive Robert Dunn said. “This enables them to grow their businesses with each subsequent loan increasing their productivity, income and the living standards of their family.”
About 60 per cent of Opportunity’s clients are involved in agriculture and animal husbandry. Its funding comes mainly from donations from individual Australians, as well as some support from corporations. The government accounts for about 20 per cent.