Today along with banks many small financial institutions are available to lend hand to small businesses. According to certain report people of UK get miserably low saving interest rate from banks For example, you may get ₤1 interest on ₤100 so it’s much more viable to lend to an entrepreneur who is trying to lift himself from poverty by doing his business. One of renowned group of UK namely The Cooperative Group announced its micro finance institution that permits people in UK to lend small sum of money to entrepreneurs who are striving to build better future for their family and themselves.

For example it may be peasant of Cambodia who wants to buy fertilizer, pesticide or even seed for his farm or mother of two in Philippines who runs any fast food stall and wants to expand its business or renovate its premises or shopkeeper in Togo who want funds to buy new supplies or products. Further, if you want to lend to these small entrepreneurs you need to go to an organization named lendcare where you can get list of businessman along with their profiles and among them choose anyone that you want to support. Not to forget, the money is not lend for philanthropic purpose i.e. money paid is repaid in small installments by these business man. They generally have short tenure maximum of one year. Once the money is repaid you can withdraw the money or recycle into another loan. The minimum amount that you can lend is ₤15 and maximum is limitless i.e. according to your desire or wish.

 Presently this site is aiding cities like Cambodia, Togo, Philippines and Benin etc.  Further, they aim at expanding themselves to poor states like South Africa, Ecuador and Bosnia. According to certain statistics around three quarter of these loans are provided to woman. Moreover, this group also ensures that loan is given to genuine businessman hence certain terms and conditions needs to be fulfilled like

1. They should have already approached local MFI with their business plan.
2. If proposal appear to be sound and valid then bank will approve the proposal and upload entrepreneur profile on lendcare.

 Further, the website claims that entrepreneurs get 100 percent of loan i.e. no fee is deducted towards administration charges or processing charges. As coin has two sides so lending has certain disadvantages like no interest is repaid on original amount and sometimes there is risk of default too, Rate fluctuation risk or Exchange Risk also prevails but such risks are quiet low.

 In epilogue, in current business environment lending money to banks makes little sense rather giving help to someone in need is much viable option so choose your way.

 For calculating your business loan installments visit online calculator.