Church offers 'micro credit' ministry, an idea from Bangladesh

By Lynda C. Ward
Hoosier UM News Correspondent

Most United Methodists have never heard of the term "micro credit," but at Broadway Christian Parish UMC in South Bend, micro credit is not only a familiar concept, it is a ministry that is transforming people's lives.

Micro credit, the brainchild of renowned human rights activist Muhammud Yunus, is the practice of giving small, collateral free loans to people who would not be able to secure a loan from a traditional bank. But micro credit is more than a transaction, it is a partnership between lender and borrower enacted not only to improve the financial situation of the borrower, but to transform his or her life.

This past spring Broadway's minister, the Rev. Michael Mather, traveled to the small impoverished Muslim country of Bangladesh to study Yunus's Grameen Bank, the world's largest and most successful micro credit institution, in order to see how he could adapt the program to meet the needs of his parishioners and the surrounding neighborhood on the south side of South Bend. As a result, Mather helped Broadway establish its own version of micro credit.

"So far we've given ten loans, but we don't charge the high interest," says Mather, referring to the twenty percent interest that Yunus's bank charges. "We charge only one percent, and put that money back into our program to help keep it going."

To date, Broadway's loans have supported, among others, the opening of Le'Loupes Jewelry, Dean's Tax and Bookkeeping Service (offering the loan and the additional office space inside the church), a sewing service started by a group of women in the church, and Beanie World and a bicycle repair shop both run by youth. Broadway also supports its borrowers in other ways: Broadway Market is open at the church one Saturday each month for the public to peruse the new businesses, and a web site, www.broadwaytownsquare.com , gives them a presence on the Internet.

Micro credit does have its critics, however, especially those who say that it is more "loan sharking" than ministry. But Mather, who reminds people that John Wesley encouraged Christian groups to offer similar loans, replies, "Micro credit is ministry because it is investing in the gifts of people who the world sees as poor, needy, and empty, but who we know are the gifted and beloved children of God."

Micro credit has been ministry to Broadway as well, for the parishioners are quick to point out how their service to others has increased their faith and offered them deeper insights into what it means to live in community.

Lynda Ward is the communications coordinator for the Michiana District.

Last updated on 01/14/2004

Questions or comments: webmaster@inareaumc.org