Micro credit in Turkey
What is micro credit?
Micro-Credit is a small capital for poor women that allow them to do income-generating activities.
What is the purpose of micro credit?
The purpose of micro credit is to meet the capital needs of people that will contribute to providing economic and social development, to reduce poverty, injustice of income distribution, unemployment, and a credit to the income generation activity to self and his family.
Why is micro-credit?
Micro-credit meets the need for capital of low-income women who have no capital but want to make their own business.
When was micro-credit started in Turkey and which provinces are being implemented in?
Micro-credit was started by the Türkiye İsrafı Önleme Vakfı (Turkey Foundation for Prevention Waste) in Diyarbakir in Turkey, 18 July 2003 by giving 500 TL (total) 3000 TL for each of six poor women. As of November 4, 2009, nearly micro-credit of 37 million TL was distributed to more than 27,000 members at 52 branch offices in 33 provinces in Turkey.
What is the reimbursement rate of micro-credit?
Although guarantee, bail, execution, enforcement and court processes are not followed, reimbursement rate is %100 at implementation of micro-credit in Turkey.
What is benefit of micro credit?
Microcredit can help the low-income people who are unsecured, own recognizance and has no capital to make their own business.
How Money is given in micro credit?
Microcredit is given each one of the members of group of 5 women who are sitting in the same neighborhood and live in similar economic and social conditions for taking credit no guarantee and caution.
How money is reimbursed in micro credit?
The money should be used for the planned income-generating activities within a week in which money is taken from Turkey Grameen Micro Credit Project. After one week through use of money in this manner, Credit taken with service cost and as is paid back weekly at 46 weeks.
What are the advantages of taking micro credit?
From the more than 1,000 TL-year capital needs and everyone is ready to implement the basic principles of micro credit, if they really desire to study and advance the idea of establishing their own businesses if they can establish their own business by taking advantage of capital support may be perceived as micro-credit system..
They will do as a result of income-generating activities, the poor, healthy nutrition, training development and catch the chance to change their environment.
What are the features of micro credit?
Micro credit by establishing his business has been based on income-generating activities to support the poor. In micro credit; bail, bond or bond-like transactions are made in the execution proceeding as desired. Basis of Micro-credit is to trust and believe people in each other. All money given is the credit as a debt, the debt service cost is given as weekly and monthly installments are collected back together.
Who gets microcredit?
The first task of micro credit is to free the poorest families out of poverty through their own efforts, so the target group is the poor, especially low-income women
Individual members of microcredit as establishing their own businesses are considered as a group. Micro credit groups consist of five persons.
What is the amount of micro-credit?
For the first year, the amount of credit provided for is between 100 and 1,000 liras, in later years this amount is increased by up to 1000 TL.
Is micro credit a commercial bank loan?
No. The poor people has no chance to get own recognizance, unsecured loans from commercial banks. But they have a right to sustain their lives under better conditions. Turkey Grameen Micro Credit Project provides small capital the low-income women to carry out economic activity.
What is the difference between microcredit and commercial bank credit?
Commercial banks want collateral, guarantee and surety from people who use credit. But mortgages, collateral and bail is not required in the application of micro-credit.
In micro-credit, employees of micro credit go to the village or the quarter to collect the installments every week, and they make collection there. But in commercial banks the customers are obliged to go to bank.
How much is the initial amount of the loan in micro credit implementation?
In the first year of micro credit, initial loan is between 100 and 1000 TL. In later years the by the ladder approach to capital accumulation, loan amount is increased depending on the success of the person's work. "Entrepreneurial credit" is given to who succeed in superior.
How many types of loans are given in the implementation of Micro Credit
Basic credit: normally given to low-income women who want to get micro credit and the loan amounts are ranging from 100 TL to 1,000 TL.
Entrepreneur credits: It is given the ones from who has taken basic credit, has commercial potential, and are a successful business woman and has taken important steps towards becoming a business woman and have proven that. After the first year, the credit is increased by up to maximum 1,000 TL in every year.
Struggling citizen credits: a credit is given to all the beggars without discrimination between men and women who are still begging. This credit is starting from 500 TL and without cost of service. Struggling citizens determine to be paid back, the time of repayment installments, and the amount of repayment installments. If the struggling citizen did not pay back the loan, new loan is not given to her/him.
The increased 100% amount of new credit is given to the people who returned the loan completely by the income derived by his/her work. Purpose of this loan is “no one comes soon as a beggar”.
Is it necessary a guarantor or collateral to get micro-credit?
No. Bail guarantee or bond-like processes is not required in micro credit. In addition, execution proceeding is not done. Micro credit is based on trust in each other and believed in people.
How is the implementation of micro credit?
The poor women who want to obtain credit form groups of 5 people.
Group of people who have similar backgrounds, trust each other and have a similar nature learn all the terms and conditions after a continuous training for a week, an hour a day. When they learned the situation fully, they are defined as a group and are entitled to receive credit.
How long is the repayment of micro credit and how?
Micro credit is given annually; installments are weekly and to be recovered in 46 weeks.
What type of jobs can be done with micro credit?
Those who use micro credit can do tailoring, vegetable and fruit growing, sewing-embroidery and handwork, raise and sell poultry such as pets, turkey, chicken, groceries, confectionery, laundry, lingerie, sell children's and adult clothing, sell slippers, , sell blanket- carpet-, bicycle rent, ice, produce, do picot, and sell milk and yogurt.
Why micro credit is given only to women?
Micro credit is given only to women in order to ensure women to free themselves such an environment considering the fact that the women are most affected people from poverty in the community and in the family. However, men also benefit from micro credit. Men can obtain micro credit with a woman such as his mother, his wife, his sister, his aunt etc. In all cases, woman will get the credit. However, man can benefit from micro credit taken by woman.
What are the benefits of taking micro credit?
By means of taking micro credit, transition from being a house wife to a business woman is started to be provided. Woman are now a person contributing the family's income and helps a better catch up with the children, and nutrition of children and helps children for better training.
How and where the information about micro credit is get? Where the applications are made?
You can make an application by coming yourself to the center of Micro credit or, during routine field studies of micro-credit, employees of micro-credit system can come to your home to tell you the system
In which areas micro-credit is being used?
Implementation of micro credit in Turkey is currently in 32 cities in the in the form of co-operation with the governors of provinces in Turkey under the leadership of the Turkey Foundation for Prevention Waste (Türkiye İsrafı Önleme Vakfı):
Micro-Credit is a small capital for poor women that allow them to do income-generating activities.
What is the purpose of micro credit?
The purpose of micro credit is to meet the capital needs of people that will contribute to providing economic and social development, to reduce poverty, injustice of income distribution, unemployment, and a credit to the income generation activity to self and his family.
Why is micro-credit?
Micro-credit meets the need for capital of low-income women who have no capital but want to make their own business.
When was micro-credit started in Turkey and which provinces are being implemented in?
Micro-credit was started by the Türkiye İsrafı Önleme Vakfı (Turkey Foundation for Prevention Waste) in Diyarbakir in Turkey, 18 July 2003 by giving 500 TL (total) 3000 TL for each of six poor women. As of November 4, 2009, nearly micro-credit of 37 million TL was distributed to more than 27,000 members at 52 branch offices in 33 provinces in Turkey.
What is the reimbursement rate of micro-credit?
Although guarantee, bail, execution, enforcement and court processes are not followed, reimbursement rate is %100 at implementation of micro-credit in Turkey.
What is benefit of micro credit?
Microcredit can help the low-income people who are unsecured, own recognizance and has no capital to make their own business.
How Money is given in micro credit?
Microcredit is given each one of the members of group of 5 women who are sitting in the same neighborhood and live in similar economic and social conditions for taking credit no guarantee and caution.
How money is reimbursed in micro credit?
The money should be used for the planned income-generating activities within a week in which money is taken from Turkey Grameen Micro Credit Project. After one week through use of money in this manner, Credit taken with service cost and as is paid back weekly at 46 weeks.
What are the advantages of taking micro credit?
From the more than 1,000 TL-year capital needs and everyone is ready to implement the basic principles of micro credit, if they really desire to study and advance the idea of establishing their own businesses if they can establish their own business by taking advantage of capital support may be perceived as micro-credit system..
They will do as a result of income-generating activities, the poor, healthy nutrition, training development and catch the chance to change their environment.
What are the features of micro credit?
Micro credit by establishing his business has been based on income-generating activities to support the poor. In micro credit; bail, bond or bond-like transactions are made in the execution proceeding as desired. Basis of Micro-credit is to trust and believe people in each other. All money given is the credit as a debt, the debt service cost is given as weekly and monthly installments are collected back together.
Who gets microcredit?
The first task of micro credit is to free the poorest families out of poverty through their own efforts, so the target group is the poor, especially low-income women
Individual members of microcredit as establishing their own businesses are considered as a group. Micro credit groups consist of five persons.
What is the amount of micro-credit?
For the first year, the amount of credit provided for is between 100 and 1,000 liras, in later years this amount is increased by up to 1000 TL.
Is micro credit a commercial bank loan?
No. The poor people has no chance to get own recognizance, unsecured loans from commercial banks. But they have a right to sustain their lives under better conditions. Turkey Grameen Micro Credit Project provides small capital the low-income women to carry out economic activity.
What is the difference between microcredit and commercial bank credit?
Commercial banks want collateral, guarantee and surety from people who use credit. But mortgages, collateral and bail is not required in the application of micro-credit.
In micro-credit, employees of micro credit go to the village or the quarter to collect the installments every week, and they make collection there. But in commercial banks the customers are obliged to go to bank.
How much is the initial amount of the loan in micro credit implementation?
In the first year of micro credit, initial loan is between 100 and 1000 TL. In later years the by the ladder approach to capital accumulation, loan amount is increased depending on the success of the person's work. "Entrepreneurial credit" is given to who succeed in superior.
How many types of loans are given in the implementation of Micro Credit
Basic credit: normally given to low-income women who want to get micro credit and the loan amounts are ranging from 100 TL to 1,000 TL.
Entrepreneur credits: It is given the ones from who has taken basic credit, has commercial potential, and are a successful business woman and has taken important steps towards becoming a business woman and have proven that. After the first year, the credit is increased by up to maximum 1,000 TL in every year.
Struggling citizen credits: a credit is given to all the beggars without discrimination between men and women who are still begging. This credit is starting from 500 TL and without cost of service. Struggling citizens determine to be paid back, the time of repayment installments, and the amount of repayment installments. If the struggling citizen did not pay back the loan, new loan is not given to her/him.
The increased 100% amount of new credit is given to the people who returned the loan completely by the income derived by his/her work. Purpose of this loan is “no one comes soon as a beggar”.
Is it necessary a guarantor or collateral to get micro-credit?
No. Bail guarantee or bond-like processes is not required in micro credit. In addition, execution proceeding is not done. Micro credit is based on trust in each other and believed in people.
How is the implementation of micro credit?
The poor women who want to obtain credit form groups of 5 people.
Group of people who have similar backgrounds, trust each other and have a similar nature learn all the terms and conditions after a continuous training for a week, an hour a day. When they learned the situation fully, they are defined as a group and are entitled to receive credit.
How long is the repayment of micro credit and how?
Micro credit is given annually; installments are weekly and to be recovered in 46 weeks.
What type of jobs can be done with micro credit?
Those who use micro credit can do tailoring, vegetable and fruit growing, sewing-embroidery and handwork, raise and sell poultry such as pets, turkey, chicken, groceries, confectionery, laundry, lingerie, sell children's and adult clothing, sell slippers, , sell blanket- carpet-, bicycle rent, ice, produce, do picot, and sell milk and yogurt.
Why micro credit is given only to women?
Micro credit is given only to women in order to ensure women to free themselves such an environment considering the fact that the women are most affected people from poverty in the community and in the family. However, men also benefit from micro credit. Men can obtain micro credit with a woman such as his mother, his wife, his sister, his aunt etc. In all cases, woman will get the credit. However, man can benefit from micro credit taken by woman.
What are the benefits of taking micro credit?
By means of taking micro credit, transition from being a house wife to a business woman is started to be provided. Woman are now a person contributing the family's income and helps a better catch up with the children, and nutrition of children and helps children for better training.
How and where the information about micro credit is get? Where the applications are made?
You can make an application by coming yourself to the center of Micro credit or, during routine field studies of micro-credit, employees of micro-credit system can come to your home to tell you the system
In which areas micro-credit is being used?
Implementation of micro credit in Turkey is currently in 32 cities in the in the form of co-operation with the governors of provinces in Turkey under the leadership of the Turkey Foundation for Prevention Waste (Türkiye İsrafı Önleme Vakfı):
- 27% of the women who received loans open shops of grocery store, coffee shop, a tailor, a hairdresser, glaziers, butchers, electrical equipment, and marble workshop.
- 18% of the women who received loans do Buying and selling of animals, cooking, vegetable and fruit trading, buying and selling of animal feed, purchase and sale of carpets, pepper, trading, commercial activities such as procurement of supplies for dye
- 17%, of the women do activities such as dairy cows, cow farming, goat and sheep breeding etc.
- 16% of the women do activities crafts such as the construction of various production activities yogurt making, cheese making, making clothes for children, fresh-made, dowry goods
- 10% of the women do sales of beauty supplies, bicycle rental, sewing-embroidery machine, washing machine, motorcycle luggage transportation, and sale of services such as ice-selling by buying refrigerators.
- 8% of the women such as the sale of fish peddler vegetables, clothing, bread, chocolate, cookies, and 4% of vegetables, cotton, wheat farming, such as agricultural credit use in the business.