How Microfinance Works

​Without access to banking services, refugees and those trapped in material poverty don’t have a safe place to save for lump sum expenses, like school fees, or a way to access affordable credit to support income generation. Without access to insurance, paying for emergency expenses can be devastating. Broken systems force many of these families to struggle to survive rather than thrive, and, as a result, they lack the opportunity to overcome poverty.

Seed Effect’s Christ-centered savings-led microfinance program provides a safe place for our members to save and borrow money in order to generate income, as well as Christ-centered community and spiritual discipleship.


Self-selected groups of 15-25 individuals meet weekly with a Seed Effect trainer to:

  • Study God’s Word together
  • Build Christ-centered community
  • Pool their savings
  • Contribute to a micro-insurance fund


As their savings grows, group members provide interest-bearing loans to each other. These loans are used to:

  • invest in businesses
  • pay school fees
  • provide for other household necessities.

The micro-insurance fund serves as support in case of emergencies. 

Share Out

At the end of the cycle their savings and the interest earned is distributed based upon the amount contributed.

On average, Seed Effect members report a 30% return on their savings!

84% of members graduate from Seed Effect’s three-year program.

98% of graduates continue to meet independently after graduation.