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PROJECT 3
INTRODUCE MICROCREDITS
What are Micro Credits?
These are small loans geared towards helping people who generally do not qualify for the normal Bank Loans issued by the large financial institutions.
- They have the following characteristics:
size - The loans are micro, or very small in size
target users - they are micro-entrepreneurs and low income households
utilization - the use of the funds is for income generation, and enterprise development or can also be used for for community use (health/education) etc.
terms and conditions - most terms and conditions for micro credit loans are flexible and easy to understand, and suited to the local conditions of the community.
Micro credit is the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. It has proven an effective and popular measure in the ongoing struggle against poverty, enabling those without access to lending institutions to borrow and start small business.
We view micro credits not as the solution to poverty, but as a START.
In some Countries Micro credit has been used as an 'introducer' to other Community Development Projects.
It can be used as an entry point into bigger Government Community Programmer's and as an ingredient of larger education/training exercises.
As a practical example of the use of Micro credits, in Colombia, hundreds of families have been able to leave the mines and create micro enterprises in regions that are more hospitable than their previous employment
Here the most poverty stricken and excluded have also been able to acquire a new financial autonomy and above all developed a great pride in being able to provide for their own family and children.
The micro credit is not a lost fund, it is money which stays in a lasting revolving fund. Its effectiveness lies in the fact that it helps many families in succession. A family can be helped via this system. It is repaid and then some other family can be assisted.
We need to build a revolving fund of $ 1000,000 giving us a recipient base of 1,000 users. One thousand poor families is our initial target, probably leading to 6,000 beneficiaries in this first stage.
Due to a shortage of funds, we are not able to accept everyone that would like assistance. If you can help by making a donation then this will go to helping multiple beneficiaries due to the nature of our scheme.
You can help us also by using our QUICK SHOP facility where some of the Big Companies will pay us a tiny commission if you purchase through that channel. We will put some of the Third World Products on here so that you will be able to help directly by buying direct from those communities concerned. Using our approach we can help create a FAIR TRADE system for a number of individuals and communities.
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