An analysis on micro credit programs in Turkey

This study aims to examine the programs implemented under the name "Microcredit" in Turkey. Although it is not included under microcredit application, loan applications that contain that content have also been taken into consideration. The basis of microcredit is to indirectly enable low-income individuals to participate in production by meeting the needs of low-income people and increasing their welfare levels by providing minimal loans that encourage them to produce. As can be understood from this definition, small-scale loans are given in micro credit, and its most striking feature is that "unsecured loans are provided to individuals who wish to be involved in the production phase but do not have enough capital or the ability to take out a loan." (İlalan, 2017: 53). There are many applications under the name of "micro credit" in Turkey, but when these programs are examined, it is seen that some applications target people above the poverty line. It has been observed that the practices aimed at providing loans for low-income segments are similar to the basic methods of microcredit in terms of method, but the loan amounts given to individuals and the segment to which the loan is given are, by definition, contrary to microcredit practices. For this purpose, first of all, a literature review was conducted, and the applications of the relevant individuals and organizations under the name of microcredit were analyzed and it was determined which target groups they could meet the expectations of. The expected result of the study is to show that not all programs called microcredit in Turkey are based on the main purpose of microcredit, and to draw attention to the distinctions, functionalities and differences that occur after the loan application of "microcredit" applications that fit and do not fit the definition. Key Words: Micro credit, poverty, fight against poverty, micro entrepreneur, income inequality