Alright, there are more to tell you about the Microfinance Foundation. It deals with not only in supporting people to run their small businesses, but also do four more sectors;
(2) helping debtors to recover their credit rating, (3) giving loans to small business runners in traditional market, (4) giving free insurance to welfare centers for the challenged and underprivileged children, and (5) providing loans to social enterprises.
Well, the foundation provides less than 5 million Korean won to each debtor with low interest late, less than 4 percent. Then, the recipients can pay the money back for five years while trying to make money to repay their debt by progressing with the loan.
4) FREE insurance for welfare centers?
The foundation also takes care of social infrastructures for the children in low-income family and welfare center for the disabled. Total 770 facilities covering 10,161 people, nominated by 16 self-government throughout the nation, will be receiving this free insurance.
5) The last, but not least, the Microfinance Foundation also keeps its attention on supporting social enterprises. It provides less than 0.2 billion Korean won to each enterprises certified by Ministry of Labor with an interest rate in between 2 to 4 percent. Then, the enterprise is expected to pay back in six years.
Well, so far, any questions? 🙂
It seems like the foundation look a lot different compared to the original version of microcredit loan in Bangladesh. The Korean version of microcredit loan is just expanded its size and tries to help both persons who are in a burden of economic hardship and small business including social welfare centers. And furthermore, it encourages socially responsible enterprises by giving low interest loans to them.
Despite the economic downturn in South Korea, this foundation aims to help recover debtors who are economically underprivileged and spur positive fever among small business runners and social enterprises. But, since this project highly depend on the recipients’ ability to pay back, there is still a room for us to keep an eye on the matter.