OUR MICRO FINANCE LOAN PROGRAM
Equipping Lives for the Future
We empower individuals and families by helping them find creative ways to generate and increase their income. For many people, owning a small business can be a pathway to earn income, support a family and become self-sufficient. However, without access to basic financial services such as savings and loans, starting an enterprise can be difficult, if not impossible.
Our Micro Finance Loan Program specializes in small business loans tailor made to the needs of each client and an array of business support services and resources to start and/or expand small business.
We provide assistance to entrepreneurs in overcoming the biggest challenge of any start-up or emerging business. Through our program, individuals are able to access affordable financing that they may not otherwise qualify for with traditional lenders.
TRUST BANK PROGRAM
We empower individuals and families by helping them find creative ways to generate and increase their income. For many people, owning a small business can be a pathway to earn income, support a family and become self-sufficient. However, without access to basic financial services such as savings and loans, starting an enterprise can be difficult, if not impossible.
Our Micro Finance Loan Program specializes in small business loans tailor made to the needs of each client and an array of business support services and resources to start and/or expand small business.
We provide assistance to entrepreneurs in overcoming the biggest challenge of any start-up or emerging business. Through our program, individuals are able to access affordable financing that they may not otherwise qualify for with traditional lenders.
How It Works
Trust Bank Group
Our Trust Bank Groups consists of 20-40 entrepreneurs, mostly women, who are selected with the help of village leaders, local pastors and the community. They are individuals and families that demonstrate integrity and the motivation to lift themselves out of poverty.
Members elect a president, secretary and treasurer to oversee each Trust Bank. They are encouraged to support and motivate each other to succeed by sharing of experiences and ideas. Our Trust Bank Groups pledge to guarantee each others loans and if one member defaults on a weekly payment the other members must cover the cost. Members depend on and trust each other which in turn increases their chances for success and strengthens the community.
Loans
We offer individual and group loans, as well as loans for private schools and farmers. With personal interactions with clients our loan officers specializes in creating innovative loan products to meet each client’s need. Our microloans enable our clients to purchase tools, supplies and services to help start or expand a business and in turn to stimulate the local community.
These loans typically range between $50 – $500 for a period of 3 to 6 months with a reasonable interest rates. When a loan is repaid clients are eligible for a larger line of credit or funds are available to finance new enterprises. Our loan repayment rate average is an astounding 98%.
Savings / Insurance
Savings play an important role for economic development. We train our clients in the importance of savings and how they must put 10% of their earnings into a personal savings account to build up funds that can keep their business growing after their loans are fully repaid.
Compulsory loan insurance is required for each individual loan and supplied by the MicroEnsure Organization. This covers health, life and weather variance. The cost of the insurance is included in the application fee which is paid by the individual when the loan is approved.
Training
Firstly, our training focus is the teaching of life skills and principles that foster leadership and commitment, while furthering the development of the entrepreneur. Understanding the importance of how to manage their personal finances is vital to their success as they become self-reliant within their community.
Secondly, all clients must attend our Business Success Series which includes 12 lessons that covers everything that an aspiring entrepreneur needs to know to start a business. This practical, “hands on” series deals with action steps to develop a simple business plan and budget, how to create profitability and efficiency to keep a business strong and competitive.
Advance Training for Future Growth
One of the greatest challenges to small businesses is to maintain growth. We provide advance training, and research to equip our clients with the skills they need for future growth.
- Increase product variety
- Improve product quality
- Enhance productivity
- Hiring employees
- Satisfying market demand
- Gain access to local markets
- Establish strong distribution networks