Small Money - Big Impact
Today, microfinance is used an umbrella term for financial services, such as loans, savings accounts and insurance for a target group which—due to a lack of financial security and not having regular income or homes near centers - is not serviced by commercial banks. Microfinance received great attention in 2006 when Muhammad Yunus, the founder of Grameen Bank, received the Nobel Peace Prize for his microcredit concept. The basic idea:
- Assistance for self-help
- Access to financial services for all
- Promoting independence, especially of women
- Establishing national financial systems
Private investors will only be able to invest in IIV Mikrofinanzfonds (Microfinance fund) and participate in this concept in a few years. We are among the pioneers of microfinance investments in Germany and established the first such fund with IIV Microfinance Fund in 2011.
More than capital supply
The microfinance institutes selected by us often not only provide capital and financial services, but also assistance to borrowers, e.g. through further education, to ensure sustainable business management. The high repayment rates of, on average, 98% demonstrate that the vast majority of borrowers succeed in realizing their entrepreneurial potential. Properly applied, microfinance can reduce poverty and help people raise their standard of living through their own efforts.