Hi all, Frank’s Talk Talk today.
Mrs.Kim is 40-year-old lady, running her own small take-out coffee shop at the corner Seoul station. She wants to renovate her shop, as it is now too old and needs new painting and another coffee machine. So, last week, she went to few banks to borrow money but came back home without any loans available for her. Why? Mrs.Kim is one of the ‘financially excluded’, as so are many of small merchants and wage workers.Those low-income households, along with a low credit rating, usually face difficulties borrowing money from private financial institutions.
However, Mrs.Kim found a way-out, as her friend Mr.Lee told her that ‘Smile Microcredit’ is there for her! Actually Mr.Lee had received the Smile Microcredit three months ago, and could open his shoes store. Smile Microcredit was introduced by Korean government in December 2009. The scheme encourages low-income households to open their own businesses as well as helps small merchants’ financial difficulties related to business operating costs. Smile Microcredit is not one-off scheme, as a follow-up program is provided. The follow-up program is to enhance the receipients’ economic capabilities.
There are many microfinance programs available for low-income households. A good news is? the mircrofinance program will be even strengthened by the grand expansion. The size of expansion is an extra KRW trillion! Funds for microfinance programs will increase from KRW 3 trillion to 4 trillion a year.
Details are as follows;
Any of your friends suffering from financing because they are low-income earners without any high credit rating? Why don’t you introduce this brilliant expansion plan for Microfinance? Now, I am going to tell this to my uncle Sam planning to open his small cafeteria. He cannot be happier to hear this news.
* More details regarding Smile Microfinance is available here (in Korean only) http://www.smilemicrobank.or.kr/