Microcredit in Lebanon: First Data on Its Beneficiaries

Abstract

In Lebanon, microfinance is not specially developed. Financial institutions that allocate microcredits are NGOs that are mildly supported by the government. The activity of these institutions affects only 11.5% of the population (IFC, 2008, cited by Mayoukou et al., 2013. These authors note the lack of empirical data related to microcredit granted by microfinance institutions in Lebanon, particularly regarding the characteristics of their beneficiaries. Our study emphasizes the characteristics of beneficiaries of microcredit allocated by MFIs (microfinance institutions) in Lebanon. As a result of data obtained from MFI heads, the results seem to show that NGOs MFIs give more credit to men than to women, and a low percentage of credit goes to startups. In addition, beneficiaries have a low level of education, poor or moderately poor, and are located in rural areas. Gender discrimination in the allocation of micro-credits was highlighted on the basis of the first data processed in this work. The results of the interviews with MFI's administrative officials seem to show that the men loan officers may distinguish between male and female beneficiaries and prefer to grant microcredit to a man. Women beneficiaries may have less information about the credits offered by them, or do not take initiative because they live in a patriarchal society. Moreover, men go through their wives to get another microcredit.

Microcredit and Gender: Are There Differences in the Credit Conditions?

“…(Wahidi, 2017). This shows how microcredit plays a key role in the development of small entrepreneurial or family businesses, and is capable of improving the income condition of less-favored classes.…”

“…Microcredit programs can therefore be considered one of the most popular development strategies (Enimu et al, 2017;Ghosh & Neogi, 2017;Ugwuja & Nweze, 2018;Wahidi, 2017), whose objective is to serve the poor, many of whom do not have access to traditional banking services, without the need for the borrower to present some kind of guarantee (Al-Shami et al, 2017;Armstrong, Ahsan, & Sundaramurthy, 2018;Milanov, Justo, & Bradley, 2015;Thanh & Duong, 2017;Wahidi, 2017).…”

“…The fact is that in recent years a great emphasis has been put on microfinance, hoping that poverty might be reduced and women's empowerment might be promoted. Thus, microfinance programs have focused on millions of women living in developing countries, helping them to have access to microcredit services (Bezboruah & Pillai, 2017;Haile, Bock, & Folmer, 2012;Wahidi, 2017;Zhang & Posso, 2017).…”

“…Around the world, the level of microcredit is estimated to be more than 12 billion US dollars, and its beneficiaries include nearly 200 million clients, of whom ¾ are women (Wahidi, 2017). In Brazil, in the third quarter of 2015, women represented 62.13% of the clients assisted by the National Program of Guided Productive Microcredit (Ministério do Trabalho e Previdência Social, 2015).…”

“…The study by Wahidi (2017) emphasized the characteristics of beneficiaries of microcredit allocated by MFIs (microfinance institutions) in Lebanon. The results seem to show that NGO MFIs give more credit to men than to women.…”