“Poor women will never repay their loans -1968
“Poor youth will never repay their loans – 2009
The similarities between the perceptive of financial institutions toward poor women in the 1960s, and perceptive of poor youth today in 2009. Back then it was common to hear “women will never pay back, women are too risky “just as it is common to hear “youth will never pay back, youth are too risky “Today. This is not just a keen observation, but the reality of finance today; assumptions on creditworthiness are to the detriment of the poor youth the world over, not only to their access to finance, but to their quality of life.
If formal banks will not challenge these stereotypes and loan money to youth , then it will be the opportunity of microfinance institutions to challenge these ideas.Microfinance is constantly searching for new markets to respond to , and to provide , what is in the words of many , “social financing “ Youth make up atleast half of the world’s population , and represent our future and today. They are the center of new kind of social financing investment in the years to come. It is assumed that they are higher risk, and susceptible to changing whims and inconsistency , but these are the same assumptions made of women 30 years ago , and these are the same stereotypes that microfinance has a chance to break today.
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