Malta microfinance aims to support people struggling financially who don’t have access to the traditional banks by giving them small loans to improve their lives significantly.
The company aims to enable people to improve their lives through education or setting up a small business. People who can’t access banks and their services are often inhibited from using opportunities that could help them move forward. In a crisis situation it might even come to a point where a person would borrow money from informal sources which will only lead to a spiral of debts.
Schemes and loans
Malta Microfinance has schemes for education, business, personal and rent loans which can be approved in certain crisis situations.
The loans are Interest free. There is a 10% fee which applies by signing of contract. Loans are repayable over a 12 months, for example a loan of €600 would mean monthly repayments of €50 (600/12=50).
Eligibility criteria
Besides various documents – depending on the type of loan – a Mentor will be needed.
The client will be required to find a mentor. It is a person respected in the community who is willing to sign the loan with the client as a mentor. This is not to act as guarantor but to confirm who the client is, and that they will help Malta Microfinance maintain contact with the client. One of the mentor’s duty is to be there for the client if problems occur and to check if the loan is repaid regularly.
The human at the center
Malta microfinance was created to reduce the gap between people who cannot have access to traditional banks and the others. Sometimes a little help can make a big difference... but only if you can receive that help. The relationships between the institution and the applicants are based on trust which is an important value here.
Christa Wiegand, the support worker managing the company, says that “If somebody is coming for a rent loan, we talk about and we check all the possibilities. We just don't want to make sure that they can pay back, but we want to make sure that they get in a better position with this loan”
Malta Microfinance is a non-profit entity, sponsored by the Church of Scotland and owned by St. Andrew's Scots Church in Valletta.
For more information you can see their website: www.maltamicrofinance.org.
You can contact them If you like to set up a meeting or presentation to discuss their service on a deeper level:
Mobile: 99005648
The origin
The company has been active since 2013. It has already helped dozens of people struggling financially in the country. It is the only institution of its kind in Malta and is based on the Grameen bank model in Bangladesh (1983), designed to lend to people in a financial crisis situation, especially women and migrants.
The Bengali bank model was created by the Nobel Laureate Professor Muhammad Yunus for poor women and widows. Since then, a lot of banks following that business style exist around the world and about eight million people have received support from them.
