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Microloan
To pre-qualify before they are given a loan, women need no collateral. They simply must show they are lacking basic needs to provide for themselves and their family and have a good standing in their community. Then after they successfully complete the 5 Business training sessions and possess a sustainable business idea formed into a business plan with the help of a loan officer.Women are now eligible to receive a loan on average of $250 US dollars.
Women then form a "Pride" which consists of 5 women that share similar business interests and live in the same community. There are then several "Prides" that together form a larger group that they meet with make payments bi-monthly.
Loans are repaid over 6 months with interest rate of 3.7%. After the first loan is successfully repaid, women are encouraged to take out a larger loan so that they can grow their business and increase their income.
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Training
Women complete 5 business training classes before they receive their first loan. The classes cover basic business planning, budgeting, accounting, marketing, groupl savings and loans, and the importance of group support.
After women receive their loan, the business skills training they received is reinforced during their bi-monthly meetings and with additional help as needed with loan officers and "Pride" group leaders.
Our future goals include the development of a literacy program, personal development classes, and health in the communities we work in.
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Group-led Savings and Loan Program
We require borrowers to save 10% of their initial loan over the course of their loan.
When needs arise that are outside income-generation, such as health emergency, theft, education, or home improvement, small loans can be offered through the "Prides" own savings with interest rates decided upon by the group.
This instills a sense of group satisfaction in their larger saved amount as well as reassurance that they are saving for their future.
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FAQs
• What is Microfinance?
Microfinance is a broad term that covers a variety of financial services including microcredit, savings, insurance, and home loans targeting the impoverished, however each MFI varies in its range of services.
• Why loan primarily to women?
Women have shown to better not just their own lives but improve the situations of their families. Women tend to invest money in the education of their family and make improvements to their home.
• How big are the loans?
Average loans are about $250 and range from $150-$500 US Dollars.
• What businesses do the women start?
Women typically start very small businesses such as the buying and selling of food, clothing, jewelry, and other easy start-ups.
Why do you charge interest if you are non-profit? All MFI`s regardless of non-profit status must charge interest to cover the cost of making very small loans. We are also individually servicing each client's loan and savings as well as providing initial business training programs, managing bi-monthly group meetings, and continuing education on health, business, and personal development.
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