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What is a Microloan?

Simply put, a microloan is a small loan. Although loans vary in size, generally Namaste Direct provides loans of $250-$300, so for every $700 we raise, we can provide a loan and a business advisor to a client.

Here is our reason: Countries with high rates of poverty are easy targets for loan sharks, people that loan money but at the cost of high interest rates and strict payback policies that can quickly spiral out of control for the loaner. Most of the time, the loaner ends up in more debt and financial instability than they began with. But with loans of $600 and a growing business that offers income, we can provide these women with the money they need without the risk.

Isn't that a little low?

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Benefits of Microloans

  • Many people who normally would not qualify for loans in regular banks can get the resources they need! 

  • ​This is especially true in Guatemala, where many banks have qualifications that those living in extreme poverty cannot meet.

  • ​NamasteDirect, the organization we work with to distribute these loans, provides strategies to ensure that the recipients can repay what they take out.

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