Our company has designed and tested a strategy that replaces the use of collateral as a loan requirement for micro-entrepreneurs who do not have the means to access loans from existing financial institutions. The strategy has created hope among micro-entrepreneurs who were systemically discriminated against by well-established financial institutions including banks and Savings and Credit Cooperative Organizations(SACCOs).
Our current effort has increased the size and number of businesses available in Mbarara City, provides steady employment and improves the financial stability of the area. Most significantly, it provides something that is often missing in poverty-stricken areas: Hope.
Impact Made to date
Our company identified a problem, designed a program to resolve the problem, tested the program, and we are currently implementing it.
Our loans have been safe, easy, affordable, and 100% of 460 clients in our program are paying according to the agreed terms and conditions.
Ever since the program began, our pioneers are about to join phase three that is when they join the program is known as phase one. When they renew the loan for the first time, we call it phase two and the second time of loan renewal is known as phase three. All our clients have a good credit history of borrowing at the moment. Note: every phase or renewal comes with the loan amount increase and we are sure that it increases the operating capital of our clients.
Our program started with 20 clients and we have recruited more totaling up to 460 clients. As noted earlier, we have hundreds of clients who have formed groups and reached out to us for our services, but we do not have enough resources to supply the demand.
Finally, our clients’ businesses provide places to shop, employment for operators, and the expansion of local economies. Note: most of our clients sell food, fruits, vegetables, firewood, charcoal, clothes, shoes, fish, chicken, and run local restaurants which are essential to our society. Also, our clients have given us success stories regarding stock increment in their businesses. For example, we have a client who reached out to us to say thank you. He said, “I used to stock 5 chickens in the market on a daily basis but now I have the capacity to stock 15 and above.”