5. Micro Credit Project
The goal of the project is “Economic” empowerment among beneficiaries and strengthening “Peace” building through the youth.
The main aims and objectives of the project is for economic empowerment i.e. supports the income generating activities and strengthening existing business and other commercial activities of the beneficiaries.
- In order to improve and ensure better group members relations, better business operation and foster saving culture to the members, Micro Credit project component provides business skills, Group leadership skills and VSLA trainings to beneficiaries to ensure that they are fully equipped with the knowledge on how to best handle their groups.
Beneficiaries attending a training
- Support groups to register as legal groups with government institution, and open banks accounts before they receive the fund.
- Provision of revolving fund to selected grin the revolving loans at group levels this is refunded with 5% interest in six months period. This is to enable them start and or improve on their already existing businesses.
- Conduct regular group monitoring visits, which involves visiting individual businesses, checking various books of accounts provided to individuals
- Provide specialized tailored trainings to beneficiaries with major emphasis.
- Micro credit beneficiaries are now benefiting from the health fund from St Mary Hospital Lacor-where they receive treatment on credit and repay in breakdowns for up to a maximum of six months this is helping them to access better health care/ services yet their businesses are not affected by spending on treatment
- Facilitate the participation of a selected number of beneficiaries to 3 promotional events/ trade exhibitions
- The project component has managed to support over 371 direct beneficiaries in twenty five groups in Gulu, Amuru, Oyam and Nwoya districts. These beneficiaries have remarkable improvements in their business and income generation ever since
they started getting surport from CSG.
- On the basis/policy of zero balance to as prequalification for new loans to be given, MC has managed to disburse loans to groups who complete their loans within the stipulate periods hence to this
- With revolving fund and to this point we have disbursed loans to groups for over five times out of the twenty five
- Successful group monitoring visits since this month has recorded one of the highest number of groups visited consequently, there has been great improvements made in the various areas within these groups.
- Most groups with loan defaults have drawn better strategies to handle their defaulting members to ensure they finish loan repayments in many cases, they have indicated date lines beyond which the members’ assets / security will be confiscated to enable the group sell and recover their loan amounts.
- To this point the project component has a portfolio base of 86,717,180/= this is a sum of outstanding loans and capital at hand and or in the Bank. This is a great achievement considering the nature of our targeted beneficiaries who are marginalized categories.
- Finally the sub-project has fostered better social relationship among group members and community members through meetings. The beneficiaries have been given a lot of exposures to other markets and businesses
- In terms of social relationship, the project component through has improved the saving abilities of its targeted beneficiaries and well-wishers through VSLA practice revolving fund usage.
- Loan recovery has improved with rate of refund of up to 75.9% with portfolio at risk of 3% for the last 180 days, annual loan loss rate of 3 % since last year these are great achievement given the nature of our beneficiaries and can be attributed toregular group monitoring and closure relationship between MC staff and beneficiaries.
- VSLA groups have improved savings among the beneficiaries.
Category: Payday loans