Wednesday, November 01, 2006

Interesting Fact About Loaning Women

WHARTON LEADERSHIP DIGEST: Why does microcredit focus primarily on women?

ISKENDERIAN (CEO of Women’s World Banking): Microfinance has traditionally focused on the underserved and the un-banked – low-income women are that in spades, unfortunately. They also tend to be very, very good credit; they have extraordinary retainment records. Research also shows that when you make a dollar of loan funding available to a woman entrepreneur who is building her business, the multiplier effect on the community as a whole is far greater than a similar dollar of loan to a man. She turns any profits first back into her children’s education, secondly into healthcare for the community, and thirdly into housing. Loaning money to these women just makes good sense, not only from a business and retainment standpoint, but from a community standpoint.

Source: WHARTON LEADERSHIP DIGEST

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