About Microcredit

Microcredit works by extending small, trust-based loans to impoverished entrepreneurs unable to obtain credit through traditional means. Rather than a one-time handout, microlending has the ability to help entrepreneurs from developing regions grow and sustain their businesses over the long run.

The size and repayment terms of loans are structured with poor borrowers in mind, but microcredit is not a handout. The goal is to build a sustainable, long term system that is inclusive and works for the poor in helping them improve their lives over the long term.

This promise was recognized with the 2006 Nobel Peace Prize to Muhammad Yunus of Bangladesh, and the woman of the Grameen Bank which he founded. This prize is not only a symbol of the hope microcredit holds for breaking the cycle of poverty, but as a peace prize, also of the importance of economic equality for long term peace and stability on our planet.

The AOC Microcredit Fund

A youth built, youth led microcredit fund. Through ongoing awareness and fundraising events and the success of major projects such as Riding to Break the Cycle and the AOC Microcredit Challenge Agents of Change is building a microcredit fund entirely managed by the youth creating it. Connecting youth with individual developing world entrepreneurs, we are providing a crucial tool in the fight to escape poverty and engaging a new generation fo young leaders.

In partnering with an inspiring and innovative organization by the name of Kiva, we will be able to target our lending and directly witness the results. Kiva provides a platform for individual borrowers living in poverty-stricken areas to post their stories, pictures, and business goals and needs - individual lenders then select people they wish to support with loans as low as $25, and receive reports on their progress.

• All businesses are screened through microfinance partners on the ground in areas of need.
• 100% of all loaned funds are delivered to the borrower, and we as Kiva lenders receive no interest.
• Kiva partners’ repayment rate thus far is over 97%.