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A TOOL TO COMBAT POVERTYMICROCREDIT PROGRAMTo break this vicious cycle of poverty, SOCADE has developed a microcredit program that consists in lending small amounts of money to poor people so they can increase their economic activity. The general idea of this program is to grant loans, but in a spirit of community and solidarity. For example, the loan is granted to a woman on condition that she be part of a group of 5 people who undertake to help the borrower manage the loan and, above all, repay it if the borrower is unable to do so. Moreover, if the loan is not repaid, the group members will no longer be able to obtain a loan to finance their activities. This type of joint lending spares poor people the constraint of collateral demanded by banks. In addition, it creates solidarity among those who form the group. TARGET POPULATION This microcredit program is intended exclusively for women in developing countries. To qualify, women have to be living below the threshold of extreme poverty and be engaged in some form of economic activity.
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