Micro credit services

Location:                        Kabale - Uganda

Project leadtime:            1 year
                  
Requestor:                      Leonard Tumwesigye on behalf of Children Rescue Voluntary
                              Organisation

Description of the project:

Inability to access credit services is a big hindrance in the progress to be financially self-sustaining amongst the households supporting CRVO children. The caregivers will run a number of income generating activities, including small scale businesses, after receiving a small initial capital. Bank loans are unfavorable for low-income community members, as it requires mortgage.
This micro credit project will be run on a group saving basis, to help members access simple loans repayable on an affordable interest rate and in group guarantee the repayment and providing access to micro credits later on to other beneficiaries.

Objectives:

• Enable beneficiaries to establish small income generating projects
• Promote the savings culture amongst the beneficiaries
• Enable caregivers/households to access credit services at affordable interest rates

Beneficiaries:

120 beneficiaries, being the households of orphans and other vulnerable children supported by CRVO. Other community members will be allowed as well to help mitigate the Covid 19 pandemic effects as well as the poverty within the community.

Budget:

40.000.000 Uganda Shillings i.e. +/- 10.000 € is the needed capital to offer 120 micro credits

Risks:

To minimize risks a monitoring committee, together with CRVO staff, will besides monthly reporting do a detailed quarterly follow-up of the initiated activities.

Attached documents:

Top

Follow-up of the project

Date:                          March 15th 2022
 
General status:

130 beneficiaries were selected to get a micro credit (loan at an affordable interest rate) to start a small income generating business to fulfil the basic needs for their household. The project is running on a group savings basis and is monitored by the group leadership. These leaders are responsible for guaranteeing all members are doing their paybacks.

Progress since last status report:

In October 4 groups were formed, including the selection of the group leaders and small trainings were conducted. After a grace period of 1 month the members started to pay back the interest and a fifth group of single mothers was formed later on.
The group-based process seems to be successful and all beneficiaries reached a net profit.

Financial status:

The provided funds have been distributed amongst the beneficiaries as shown above.

Problems/concerns:

The loans are too small to invest in their own ongoing business to prepare for hiking commodity prices. An additional financial boost would increase their savings and investments.

Attached documents (pictures, receipts,…):

Pictures

Top

Micro credit service - Extension

Location:             Kabale, Oeganda

Project leadtime: 1 year

Requestor:          Leonard Tumwesigye on behalf of Children Rescue Volutary Organisation (CRVO)

Description of the project:

The 130 beneficiaries of the micro credit service project proved that the group based saving approach is successful and all members made net profit out of the small income generating activities they could start.

Objectives:

Enlarging the loans will allow all the beneficiaries to cope with the increased prices of the needed materials and to make more profit to be able to invest more in their small business.

Beneficiaries:

130 household responsibles split in 5 groups, each lead by 3 group leaders showing by all members in the group.
Approximately 650 members of the households, including vulnerable children under the wings of CRVO.

Budget:

40.000.000 Uganda Shillings, equal to 10.527 euro

Risks:

This project does not have any risk as the initial phase showed to be beneficial and supported people in becoming social economical stronger after the very difficult Covid years.

Attached documents:

None

Top

Follow-up may 2022

Date:                          May 18th 2022
 
Name project:           Microcredit services

General status:

From the start of the project teamwork has proved to be the major tool being used for the smooth running of the program. Injecting in more funds has made it easy for each member to access some reasonable funds to boost his or her business.

Progress since last status report:

The distribution of the additional funds, as approved by management and group leaders of the groups that are benefiting from it, was based on the numbers and individual ability to use the funds.

This distribution was made amongst five groups as below

Kekubo group                          6.000.000 Shillings
Kiyor group                             12.000.000 Shillings
Kaziniro group                         6.000.000 Shillings
Kitojo group                            13.000.000 Shillings
Single mothers group              3.000.000 Shillings

Financial status:

This project was boosted with 40 million Shillings which were distributed to the five groups mentioned above.

Problems/concerns:

The small income generating businesses are impacted by sky rocketing of prices.

Attached documents (pictures, receipts,…):

Top

Follow-up august 2022

Date:                          Aug 8th 2022
 
Name project:           Micro credit service

General status:

The additionally provided funds were divided amongst the 130 beneficiaries, to meet the challenges of extremely increasing prices. The project is running on a group savings basis and follow-up by the group leaders works fine.

Progress since last status report:

Once the additional funds were transferred, the loans for all groups of beneficiaries were enlarged as follows:

The monthly payback of the loans per group is done very strictly and correct:

The group-based process seems to be successful and all beneficiaries reached a net profit.

So far CRVO received loan paybacks for a total amount of 4.580.000 UGX so in coming months an additional group of beneficiaries can be supported.

Financial status:

The provided funds have been distributed amongst the beneficiaries as shown above.

Problems/concerns:

None

Attachments:

Pictures of the groups of beneficiaries

Top

Images

Clic on the image to see the whole album

Top