LogoLogo
impactmarket.comimpactMarket dAppLibera Crypto WalletSupport
English
English
  • Welcome!
    • 📜impactMarket's Whitepaper
    • 1. Overview
      • The Context
      • The Concept
    • 2. impactMarket's Products
      • Microcredit
        • Theory of Change
        • Microcredit Ecosystem
        • Piloting Microcredit in Uganda
      • Unconditional Basic Income (UBI)
        • UBI Theory of Change
        • impactMarket UBI Ecosystem
        • Multiplier Effect of UBI
        • Impacts on the Communities and Beneficiaries
        • More about Communities
          • Highlighted Stories
            • ARTICLES
            • UKRAINE - UBI for Ukraine
            • BRAZIL
            • ZIMBABWE- Kunzwana Women's Association,
            • UGANDA - Women Rights Initiative
            • UGANDA - YOTU community
            • GHANA - Krisan Refugee Camp
            • PHILIPPINES - Montalban Action Group
            • ARGENTINA - Mujeres 2000
            • CAPE VERDE - Midjora nha vida
            • PERU - Agape Hand Community
            • VENEZUELA - San Pedro del RĂ­o Community
          • Communities
          • How to apply a community?
      • Libera Crypto Wallet
        • Libera Theory of Change
      • Learn & Earn
        • Learn & Earn Theory of Change
    • 3. impactMarket's Protocol
      • PACT Token
        • PACT Theory of Change
        • Impact Farming and Staking
      • Voting & Governance
    • 4. Impact Measurement
      • Reports and Case Studies
  • COMPANY TOOLKIT
    • Our People
    • Brand and Media Kit
      • On the news!
    • Legal
      • Data Privacy Policy (GDPR)
      • Terms and Conditions of Use of the impactMarket App and Website
      • Privacy Policy
      • Terms and Conditions of impactMarket’s $PACT Token IDO
    • Partnerships
  • Developers
    • Audit
    • Smart Contract
      • How to integrate
    • API
    • Environment
      • Alfajores Testnet
      • Mainnet
    • Technology
      • Blockchain
      • DAO
      • Tools we use
Powered by GitBook
On this page

Was this helpful?

Export as PDF
  1. Welcome!
  2. 2. impactMarket's Products
  3. Microcredit

Microcredit Ecosystem

PreviousTheory of ChangeNextPiloting Microcredit in Uganda

Last updated 1 year ago

Was this helpful?

The microcredit feature in the Libera wallet dApp allows entrepreneurs to borrow small, low-interest loans to grow or sustain their small businesses. Using a DeFi approach, this microcredit product aims to disburse the microloans in cUSD cryptocurrency, due to its stability and security, towards a more inclusive financial ecosystem, especially for underbanked/unbanked entrepreneurial networks. It also allows borrowers to repay their microcredit amounts directly to the impactMarket treasury, needing no intermediaries in the process.

It aims to implement the effectiveness of blockchain technology in reducing costs, improving transparency, and enhancing trust in the lending process. Additionally, we aim to assess the impact of microcredit on the economic empowerment of the borrowers, particularly in terms of poverty alleviation, income generation, and entrepreneurial activities. Three major outcomes of the Micro-lending project:

  1. Access to credit for underbanked business owners

  2. Empowers low-income women through managerial positions

  3. Generates revenue for the company to sustain the microcredit ecosystem

Outcomes expected

  1. The loan manager, the mobile banker in this case, completes a training withimpactMarket’s team in the field.

  2. Self-employed individuals or small business owners are identified by impactMarket’s partner NGOs on the ground and the mobile banker.

  3. The selected borrowers complete an interview with the impactMarket microcredit assessment team and the mobile banker.

  4. The mobile banker determines the loan amounts and provides information about each business.

  5. The mobile banker receives cUSD from the principal source of their Libera wallet.

  6. The mobile banker distributes the predetermined amounts to loan borrowers in monthly installments using cUSD on Libera or fiat money.

  7. The borrower receives the next month’s installments when they repay their outstanding balance to the mobile banker. The amount is repaid by the borrowers in fiat money.

The microcredit ecosystem has already been piloted and launched in Brazil and Uganda, both in English and in Portuguese, and is in the process of launching in Nigeria, with more geographical scopes to be integrated soon.