Microcredit/microfinance is the process of granting small loans to poor people who have no collateral, primarily to women who are the most marginalized and who tend to put their proceeds into the household and their children. The process is accomplished through an on-site facilitating agency that:

• recruits and trains responsible, appropriate borrowers, each of whom establishes her small enterprise
• helps them form groups that are accountable for each others' loans
• distributes funds for loans
• meets with groups of borrowers to collect on the loans and to guide their endeavors

Examples of businesses established include buying a buffalo to sell its milk, nets for fishing, simple machines for bottling drinks, grinding spices, or sewing, collecting fallen hair for wigs and extensions, collecting scrap/trash to be recycled, tea or petty shoppes, vegetable stands, bicycle repair, and rental of audio equipment or an auto rickshaw.

In groups of five to ten, the women support each other emotionally and financially, guaranteeing the repayment of each of their loans. As little as $35 buys a fishing net, or $100 can purchase a milking water buffalo, sewing machine, or selling station. Many of the women become leaders in their communities and bring about projects that benefit all the residents.

The facilitating agencies sponsored by Prosperity Rings charge from 15% to 18%, a rate that seems high to most of us, but which is a blessing to borrowers whose other alternative is to borrow from money lenders at the rate of 100% or more.

The repayment of the loans plus the interest generates more funds that can be reinvested as a second and third loan or used to start other women on their journey toward sustainable prosperity. Thus, your contribution keeps on growing. The entire community benefits from improvement projects brought about by these newly confident and capable leaders.