Small Loans Can Make Big Changes for Poor

By Blair, Kathy | Anglican Journal, February 2000 | Go to article overview
Save to active project

Small Loans Can Make Big Changes for Poor

Blair, Kathy, Anglican Journal

Micro-credit is taking off in the Anglican Communion.

It's a simple idea that requires a small pot of money to begin with. Typically, a number of people in a developing country get together and apply for small business loans from the pot. Other members must approve the loans because if a member defaults, the group as a whole pays the outstanding amounts. The loans -- typically granted at low interest rates -- are generally used by individuals to start or grow small businesses.

One advantage of this type of assistance is that the cash used to start a small lending project remains in the developing country, rather than having to be paid back to the First World country.

The Primate's World Relief and Development Fund likes the micro-credit idea so much it gave $40,500 to the Ecumenical Church Loan Fund in response to an appeal to Anglicans in 1998. Research in 10 countries had shown that while Anglican churches and related groups had received moneys from the loan fund in the past, the fund had not received any financial assistance from the Anglican Communion.

The ecumenical loan fund was started in 1956 to help rebuild European church buildings destroyed during the war, says Bern Jagunos, Asia-Pacific global program associate for the Primate's Fund. The loan fund is associated with the World Council of Churches.

The loan fund expanded its mandate in the 1970s to include development activities of churches and community groups in the South. Micro-credit is a key part of its program, accounting for about a third of its loans. The international fund disperses money to national loan fund committees in each country and it is those committees that decide where the money is spent.

"Loans taken by churches and grassroots organizations are paid back in local currencies retained in the respective countries as revolving funds to benefit more and more people locally," Ms. Jagunos wrote in an article about the fund.

"The thrust of the PWRDF is to support local initiatives to satisfy people's basic needs and to develop their capacity to improve their lives," Ms. Jagunos said in an interview. "Micro-credit fits within that thrust.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Small Loans Can Make Big Changes for Poor


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?