Where a little bit goes a long way: microcredit loans to women in need

Hasine Taçilik, a 44-year-old woman living in Yukarı Köseli village in the southeastern province of Diyarbakır, earns a living for her seven children through selling dairy products produced from a dairy cow that was purchased with a small loan.

“This lovely sorrel-colored cow brought joy, peace and happiness to our house,” she says.

Taçilik is, in fact, just one of thousands of indigent women whose lives were radically changed by obtaining as little as TL 100 up to TL 700 in credit from a micro lending institution. The money has to be repaid within 46 weeks in weekly or bi-weekly installments without interest but with a small service fee. Normally, these people are excluded from the formal financial system, as it is impossible for them to provide guarantees and the collateral demanded by commercial banks, in addition to coming up against social and gender barriers. But based solely on trust, the microfinance system has played a vital role in lifting the poor out of poverty throughout the world.
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FEATURE: Small Premiums, Long Term Benefits: Why Poor Women Need Microinsurance

Monica Kirunguru’s husband was an outgoing man, and a prominent member of his community. The couple lived together on a farm near Mount Kenya, where they worked hard to support their seven children and five grandchildren.

In August 2009, Monica’s husband was admitted to the hospital. One month later, he passed away.
Coping with the emotional shock that accompanies the death of a life partner can be staggeringly difficult. Coping with the financial shock at the same time, however, can make the situation seem unbearable. Typically, a Kenyan woman in Monica’s circumstances would have two options to cover the hospital and funeral expenses: take out a high-interest emergency loan, or approach friends and family for money. Read more