What is a loan for Financially Poor People ?
A loan for financially poor people, often referred to as a poverty loan, is a type of financing designed to help low-income individuals or families who lack access to traditional banking services.
Poverty loans are typically tailored to the needs of people living below or near the poverty line, ensuring they can receive financial support despite having little or no collateral and limited credit history.
What are financially poor people in the USA, UK, and Canada ?
Definitions for financially poor people in the USA, UK, and Canada:
🇺🇸 USA
Financially poor people are those living below the federal poverty threshold (about $15K for singles and $31K for a family of four in 2024). Many also use the term low-income for households under 200% of that level.
🇬🇧 UK
In the UK, poverty is defined relatively: people are poor if their income is below 60% of the national median (around £18.9K/year for a single adult). This reflects economic inequality and lack of access to essentials.
🇨🇦 Canada
Canada uses the Market Basket Measure (MBM), meaning income is too low to cover basic needs like food, housing, and transport (about CAD $40K–55K/year for a family of four). The Low-Income Measure (LIM) also defines poverty as below 50% of median income.
Which lenders for financially poor people are available in the USA, the UK and Canada ?
Here are credible lenders serving financially poor or low-income individuals in the USA, UK, and Canada, focused on accessible, affordable loan options:
United States
- SBA Microloan Program – Offers small business loans (up to $50,000) to underserved entrepreneurs through nonprofit intermediary lenders.
- Grameen America – A nonprofit offering microloans (starting up to $2,500), savings, and financial education to women living below the poverty line.
- Center for Community Self‑Help (CDFI) – A community development financial institution providing fair loans to low-income individuals, families, and businesses.
- Mission Asset Fund (MAF) – Facilitates zero-interest lending through community-based savings circles, also helps participants build credit.
United Kingdom
- Community Development Finance Institutions (CDFIs) – Nonprofits offering affordable loans to those excluded from mainstream finance, funded in part by UK banks.
- Credit Unions (e.g., London Mutual Credit Union, London Capital CU) – Member-owned cooperatives offering low-cost loans and savings products to local communities.
- MicroLoan Foundation (via UK-based NGOs) – Provides very small, interest-free loans (starting at £25) along with training, primarily to women in poverty in developing regions. MicroLoan Foundation
- Wagestream (salary-advance loans) – Offers short-term salary advances (loans up to £25,000) as part of workplace benefits—though concerns about high APRs and affordability exist.
Canada
- Windmill Microlending – A national charity offering low-interest microloans (up to CAD $15,000) to skilled immigrants and refugees for professional licensing, training, and career restart.
- ACEM Microcredit Montreal – Focuses on underserved entrepreneurs in Montreal, offering business loans between CAD $5,000–$20,000 plus coaching. Bizfund
- DELIA Micro Loan Program (NCFDC) – Provides low-interest revolving microloans up to CAD $15,000 to Canadian women entrepreneurs. Ryan
- Alterna Savings Microfinance Program (Ontario) – Supports low-income earners and social entrepreneurs with loans up to CAD $25,000.
UNITED-KINGDOM
ICELAND LOAN WITHOUT INTEREST