Microloans In Developing Countries

Throughout many poor and developing countries, it is traditional for men to earn income and money for their families, while women are responsible for caring for their children or elderly parents. However, it can be a struggle for these families to pay for school for their children, or even basic necessities such as food and clothes, due to their limited income. Microcredit organizations are working to help poverty stricken families such as these by lending small amounts of money to women. The provided money, called microloans, helps women start small business of their own and bring in additional income for their family. Although it is argued that these women could end up with an accumulation of debt that they are unable to repay, the

Women in developing countries are empowered by micro-loans because it provides an opportunity for them to pull their families out of poverty, make their own income and become less dependent on their husband, and provide a better future and education for their children, especially their

Consequently, they will be more likely to be successful and stay out of poverty when they are older. Sending their daughters to school creates many opportunities for them that they might not get otherwise. In the textbook “Geography Alive”, on page 315 it is discussed how due to a thriving business, more girls and women are able to attend school. “... women can change the world. All they need is education and encouragement.” With education, girls and women can start businesses, and have more success with financial services. It is argued that due to lack of education, women may not be able to understand the loans they are taking out or keep track of their finances, “leading to an accumulation of debt the women are unable to repay,” (The Hidden Ways Microfinance Hurts Women, paragraph 5). However, when women have the money for education for themselves and their daughters, they can understand their loans and financial situation so that they can profit. Micro-loans empower women to save money for schooling for the purpose of understanding how to run a business, and how to pay back their loans. They make it possible for women to educate their daughters, so that their daughters will understand be able to gain success from microfinance, and be able to stay out of