The Application of Microcredit Technology to the UK: Key Commercial and Policy Issues

This article addresses the following issues:

• Who needs microcredit in the UK;
• What is the extent of the unmet demand across the country;
• What are the precise terms and conditions required by microentrepreneurs;
• How repayment rates of at least 95% can be expected;
• How an institution making microcredits can become self-financing within six years.

The article also describes the main barriers faced by microcredit institutions in the UK and offers solutions to obtaining funds from the private, public, and voluntary sectors and to operating within a legal and regulatory framework that permits microcredit institutions to serve their clients with the products that they need.

Finally, the article examines the social and economic impact that can be expected from microcredit, at an individual client level, at a local community level, and at a national level.