Loans are given to groups of borrowers, who encourage each other and hold one another accountable to pay back their loans.

As a result bad debts typically run at less than 1.5%. (This is lower than most 1st world banks and approx 40% lower than traditional 3rd world lending institutions)

Women have proven themselves to be the most reliable borrowers of micro credit.

Their commitment is not simply to the other members of the borrowing group, but to their family, their children.

As a result the profile of borrowers is heavily biased toward women, as much as 98% in many regions.

As each micro loan is repaid the money is recycled as another loan, thus creating a model of self-funding for the micro credit lending institution.

In many cases charity can destroy dignity and lead to a dependency culture. Significantly, microcredit promotes work, tiny enterprise, self-reliance and as a consequence self esteem. It has proven itself hugely effective in contributing to lifting families, communities and indeed entire societies out of extreme poverty.