How TCP GLobal is different

Although thousands of Micro-Finance Institutions (MFIs) provide millions of dollars in loans each year, they often find it is too costly to serve people on the very lowest rung of the economic ladder. With TCP Global’s model, financial assistance is available to these marginalized entrepreneurs because TCP Global:

Reaches Small and Remote Communities by Avoiding Overhead Costs

• Traditional micro-finance institutions incur considerable costs in salaries and travel to serve remote communities. Low volume makes it difficult to cover those expenses without high interest charges. 

• TCP Global partners with grassroots organizations already working effectively in marginalized communities to help them set up small loan programs. Since salary and overhead are already covered, there is no added expense to manage a loan program.

Builds Sustainable Loan Programs Needing No Additional Outside Support

• TCP Global funds are a grant to a community to establish a permanent, self-sustaining loan program.

• Repayments are continually reinvested in new loans while interest earnings support community projects. 

• All payments stay in the community either as part of the permanent loan pool or as earnings for the grassroots partner’s community projects.

• Traditional MFIs need costly infrastructure to continue operating whereas TCP Global loan programs are managed by locals who have a vested interest in preserving the loan program. 

Focuses on the Success of the Borrower

• MFIs tend to focus on volume of loans issued since that is what they need to cover costs. This can lead to providing larger loans than what is needed or giving out high-risk loans.

• Since our partners’ earnings depend on successful loan repayment, TCP Global partners have an incentive to make good loans and to help those borrowers become successful.

• As entrepreneurs become more successful and need larger loans, TCP Global partners help them safely access bank loans.

Empowers Grassroots Partners by Delegating Decision-Making to Them

• Since our loan partners are already part of the community, they have the knowledge to make good loans and can draw on existing relationships to ensure a good repayment rate.

• Grassroots partner sets criteria for borrowers and approves all loans

• Grassroots partner sets the interest rate and the repayment terms

• Grassroots partner determines how earnings will be used