What is microfinance?

Opportunity International Australia helps people out of poverty through microfinance.

Microfinance includes basic financial services - including small loans, savings accounts, fund
transfers and insurance. Alongside non-financial services such as business training, microfinance
assists people living in poverty who wouldn’t usually qualify for regular banking services
because they have no form of collateral or formal identification. 

Loans as small as as $100 help people in poverty start or grow their own small business. This
enables them to earn an income so they can afford food, clean water, proper shelter and an
education for their children.

Here’s how it works…

By helping a mother buy a sewing machine to start a tailoring business or a father buy seeds to
plant a vegetable garden, small loans enable people in poverty to earn an income and provide for
their families. As each business grows, loans are paid back and lent out again. With 97% of loans
repaid, the cycle continues, year after year. Each successful business feeds a family, employs
more people and eventually helps empower a whole community.

Microfinance plus
As well as microfinance, we provide people living in poverty with non-financial (community
development) services to strengthen their businesses and develop their communities.

Our partners
Opportunity International Australia works through local microfinance institutions in developing
countries. This ensures we understand the needs of people living in poverty in the area and
allows us to serve them effectively.

To find out more about how we choose our partners, please click here.
 
To learn about our partnership process, please click here.