Microcredit and Social Tutoring for Social Inclusion
About this good practice
The background in which the BP developed its the understanding of the socio-economic transformation caused by the economic crisis of the past 15 years (sub-prime, pandemic, inflation…). Data report a rise of the percentage of people in the grey scale of economic vulnerability. Therefore, these people are positioned slightly above the poverty line, but they might not be able to satisfy their primary needs. The BP uses a stakeholder net that target the necessary professional resources to solve the problems (house, job, debits, health…). The Foundation started community’s resources (volunteering) and offers a free qualified consultation service. Thanks to public resources, it was possible to create a guarantee fund used by banks to distribute the loans (microcredit). The main stakeholders are social services and local healthcare. They work together with the interested social economy entities (Caritas, cooperative, association…). The beneficiaries are vulnerable people/families in temporary financial difficulties: people with incomes, but that with bad managing of their own money or external forces (illness, job reduction, accidents) are not able to satisfy their needs in the market. Therefore, they do not receive credit but can be funded because they are able to pay back the payment. The project of the Foundation gives concrete solutions with microcredit and the path of economic empowerment.
Resources needed
Around 200,000 euro/year of foundation founds, 4 employees, and 20 volunteers.
Personnel with economic/financial and socio-training competences.
Evidence of success
The creation of innovative tools of social finance that allow to solve people/families’ difficult economic situations is the evidence of success. Loans for 650,000 euros were sent to 191 beneficiaries and the rates of missed refund are very low.
The ability and training approach that allows beneficiaries of the service to gain those competences for not going back to the previous financial problems. Effectiveness of “detachment” from social services and development of own autonomy.
Potential for learning or transfer
The essential needs that the BP meets are not only local, but can also be implemented in Regions and States that have a similar social-economic system (OCSE area, EU in particular).
However, different might be how the partnership will be implemented to deal locally with the problem, according to the stakeholders and the specific relations. Those nets represent the channels used to spread trust and the foundation on which build the relation to solve the economic problems and the change of the behaviors and empowerment of beneficiaries.
Further information
Good practice owner
You can contact the good practice owner below for more detailed information.
