This week we provided three more microfinance loans to our sewing students. Although we have always had a 100% repayment rate, some ladies make their monthly payments by borrowing money from their family as they aren’t making enough money from their machines for various reasons. As a result, we now have a survey we complete with the students before we issue them with a loan to ensure they are committed to using their skill to earn money, they have the time to do so, their family members are supportive and that their businesses have a good chance at success. Instead of collecting the first repayment one month after they receive their machines we have decided to collect it six months afterwards. This means they can get their confidence up, build a customer base and use their initial profit to buy supplies for their businesses.
Good luck, ladies!