Microfinance is an approach to economic development that  provides the entrepreneurial poor with access to very small loans that are used to run ‘microbusinesses.’ These loans are given in spite of the fact that microfinance clients do not have anything to put up as collateral and are often illiterate and might come from societal groups that face systematic discrimination in the formal economy. The sizes of these loans are generally between $50 to $200, and they finance business activities that generate only a  few dollars in profit every day. The profit from these businesses often represents the only source of income for people who are on the edge of absolute poverty and desperation. Furthermore, Microfinance ministers to the self esteem and confidence of the people who receive the loans. The clients of World Hope’s microfinance institutions are treated as business partners, rather than charity beneficiaries, and this translates into a robust incentive to succeed, which is shown by ontime repayment rates that are generally in excess of 95%.

One of the fundamental aspects of microfinance programs is that they are to run in an ethos of business viability and sustainability. The microfinance institution (MFI) charges enough interest on the loans that it provides to cover their operating costs.

Evidence of the need for microfinance services is the fact that, wherever World Hope has established a program, the biggest problem that it faces is the overwhelming demand for loans.