"Microfinance" refers to the provision of banking and financial services, primarily lending and savings products, to economically active poor clients who are generally unable to access services offered by formal financial institutions. Microfinance evolved as the result of an economic development approach that aims to provide support to low-income groups operating small-scale income generation projects and businesses by overcoming one of the main obstacles faced by poor people around the world , namely insufficient access to credit and other banking services offered through mainstream established banking systems.

Microfinance is a powerful tool to fight poverty: poor households use financial services to raise income, build their assets, and cushion themselves against external shocks.

Our Programs:Top

Lead has two target markets for achieving its mission of supporting the expansion of Egypt's small business sector, leading to increased employment, incomes, and living standards. The first group is very poor women who live in both rural and urban areas. Lead targets women who have the ambition to expand an existing business or start a new business, but lack the education, documentation, or social standing to access finance from banks. These women are generally served through Group Loans.

Lead also serves entrepreneurs, (male and female), of varying degrees of education already engaged in productive, commercial, or service businesses who have been marginalized from the financial sector for various reasons. These entrepreneurs are generally served through individual loans.

The Blossoms of Goodwill Group Lending (GL)
Program: Top

This program is directed to female-headed households located in disadvantaged areas. This target group has traditionally been found to have less access to credit than any other sector. The program is designed to help women on a neighborhood level to start income-generating activities or to expand existing businesses. Loans are extended using the Group Lending methodology, where individual loans are provided to each member of a group of women, who together undertake to guarantee loan repayment. If one member of the group defaults on the loan repayment, the other members are obligated to repay in her stead. Program loan sizes start from as low as LE 50 ($10), with the potential for subsequent loans at increased sizes up to a maximum of LE 1500 ($270). If clients demonstrates their efficient use of the loans, are able to expand their business, and demonstrate its sustainability, they may be upgraded to the SME category and become eligible for individual loans.

Small and Micro Enterprise (SME) Individual Lending Program: Top

This program is directed at male and female entrepreneurs engaged in productive, commercial, or service activities that are in need of small loans to enhance their growth potential. Loans are extended using the individual lending methodology, where individual entrepreneurs apply for, receive and are responsible to repay loans. Loan size starts from as low as LE 1000 ($180). Individuals have the option of pursuing repeat loans, which can gradually increase in size depending on the repayment performance and needs of the enterprise.

The value of the program is that it provides SME's, who are essentially marginalized from the formal financial sector, with much-needed access to credit.

Entrepreneurs use these funds in a variety of ways, including purchasing raw materials and machinery and employing more workers. Additional capital leads to increased production, higher incomes, more employment opportunities, and enhanced living conditions, with positive impacts felt at the individual, community and national levels.