People in our selected areas are poor and live on less than $2/day. They are however willing and able to work and change their lives but access to basic finance has been difficult to obtain. Banks asked to make deposits but these poor women have no such collateral. We are able to support these women financially to start or grow their businesses without asking for any material or financials. We put them in a group and use their group solidarity as a kind of social collateral.
What is the issue, problem, or challenge?
Most people in our selected areas are poor and live on less than $2 a day. They are however willing and able to work and change their lives but access to basic finance has been difficult to obtain. They are asked to make deposits and collateral but these poor especially women have no such collateral.also shun these poor since they believe their transaction cost on small loans to the poor far outweighs their interest benefits. These continue to make the poor, poorer. We seek to solve this problem
How will this project solve this problem?
Our model is able to screen and select only the poorest of the poor. They are then made to form their own groups of three to enhance its cohesion and belongingness. We do not ask for any material or monetary collateral, but use their group solidarity as a kind of social collateral. We are able to distinguishably classify our maximum loan into stages of the cycle which makes it much easier for our beneficiaries to move gradually from one loan stage to the other. We train each group member.
Potential Long Term Impact
We measure impact socially and statistically.Our primary interest is whether the proposed project poverty reduction actually improved the lives of participants and reduces their stress of obtaining financial support for their business activities.To determine the extent to which the project is responsible for the reduction of poverty in its beneficiary catchment area, extensive data will be collected on the pre-project poverty statistics of the participants.
This project has been retired and is no longer accepting donations.