What are microcredits and how do they work?Microcreditisthetermusedtodescribemicroloansthatareusually grantedinterest-free-asystemthatisbeingusedmoreandmorein developingcountrieswheremanypeoplelivebelowthepovertyline.Micro-entrepreneurs in particular are supposed to benefit from the loans. Anexample:Aseamstresswantstobuyasewingmachinetosewschool uniformsthatshecanthensell.However,shedoesnothavethemoney, about100euros,forthepurchase.Abankwillnotgiveheraloanbecause shehasnocollateral.Throughourinternalmicrofinancefund,shehasthe possibilitytogetthismoneyfromus.Sheturnstothespeciallyformed committee,whichdecidesonhercreditworthiness.Ifshepresentsagood concept,shegetsthemoney,interest-freeofcourse.Shethenhastopayit back within a certain period of time.Helping people to help themselves Manywillaskthemselves,whydon'twejustgiveherthemoneyorthe sewingmachine?Withourhelpforself-help,weensurethatacertain responsibilityislearnedandthattheborrowerdevelopssustainable, feasible business plans. DuringourvisitinJanuarythisyear,we"symbolically"handedoveran amountforthemicrofinancefundfromourdonationfund.Asthe disbursementgoesthroughvariousinstances,itisensuredthatthe allocationoffundsistransparentandconscientious.Thecommittee,which consistsmainlyofwomen,wastrainedthisweekbyCobbyAdjanor,the coordinator of our microfinance project.
The Kekeli micro-loans - here we go!Besidesbuildingwells,oneofthegoalsoftheKekeliTogo associationistosupportthepeopleinKlologowithmicro-credits and to help them achieve greater economic security. InFebruary,thevillageboardheldameetingwiththepersonin charge,whowasnominatedbytheassociation'spresident.The four-personcommitteedefinedtheguidelinesthatwould authorisethemtoreceivethemini-credit.Fifteengroupswere definedthatcouldsignificantlyexpandtheireconomicactivities withmini-credit.AttheendofMay,ameetingwasheldwiththe representativesofallgroups,strictlyobservingtheCorona-related distance rules. Thefollowingkeydatawereset:Theinterest-freeloansof40,000F CFA(about60Euros)eacharetoberepaidininstalmentswithin sixmonths;theborrowerspayamembershipfeeof2000FCFA. Accordingtothesecriteria,50peoplewillreceiveamicroloanin thefirstmonth;fromthenon,betweeneightand14morepeople willreceivetheloaneachmonth.Thus,inthefirstyear,205loans willbegranted,andfromthenon,approximatelyanother168per year.Sincetheloansarepaidbackquitequickly,thereisalways money in the fund. Thecommitteeadvisestheborrowers-mostofwhomarewomen -onhowtoinvestsothatsustainablesuccesscanbeachieved. Giventhecurrentconstraintsindividually;ajointorganisationis plannedforlatertoaccompanythestepintonewgainful employment.(08. 06. 2020)
8 July 2020: The money is here!Klologo.Nowitcanreallygetstarted! 48timestheloanamountof40,000CFA wasdisbursedon8July-to38women andtenmen.Someoftheselected foundersarestillbehindwiththe formalities;theywillbeabletoreceive theirKekeliTogosmallloanofthe equivalent of EUR 60 two weeks later. Weareintheprocessofaskingaround howthemoneyisbeinginvestedbythe individual beneficiaries; we will report back.3 September - Day of JoyAtthesametimeasthefooddonations,anothertrancheforthe Kekelimicro-loanswasdisbursedfromtheKekeliTogodonation pot:1,000,000FCFA(approx.EUR1,500)cannowbegivento furtherresidentsofKlologowhowanttobuildupalivelihoodwith asubsidyorexpandtheexistingsmallagriculture,etc.Themicro-loans are granted without interest. Themicro-loanofaboutEUR60isgrantedinterest-free,the repaymentinmonthlyinstalmentsisfixedinsuchawaythatthe paymentscanbemadewithoutanyproblems;therepayments keepreplenishingtheloanpot.Inthisway,moreandmore Klologo residents are benefiting from start-up financing. Withthemicro-loans,KekeliTogocontributestotherealisationof UN Goal 1, poverty reduction.
We thank the following companies for their support!
8 July 2020: The money is here!Klologo.Nowitcanreallygetstarted!48 timestheloanamountof40,000CFAwas disbursedon8July-to38womenandten men.Someoftheselectedfoundersarestill behindwiththeformalities;theywillbeable toreceivetheirKekeliTogosmallloanofthe equivalent of EUR 60 two weeks later. Weareintheprocessofaskingaroundhow themoneyisbeinginvestedbytheindividualbeneficiaries;wewill report back.3 September - Day of JoyAtthesametimeasthefooddonations,anothertranchefortheKekeli micro-loanswasdisbursedfromtheKekeliTogodonationpot:1,000,000 FCFA(approx.EUR1,500)cannowbegiventofurtherresidentsof Klologowhowanttobuildupalivelihoodwithasubsidyorexpandthe existingsmallagriculture,etc.Themicro-loansaregrantedwithout interest. Themicro-loanofaboutEUR60isgrantedinterest-free,therepayment inmonthlyinstalmentsisfixedinsuchawaythatthepaymentscanbe madewithoutanyproblems;therepaymentskeepreplenishingtheloan pot.Inthisway,moreandmoreKlologoresidentsarebenefitingfrom start-up financing. Withthemicro-loans,KekeliTogocontributestotherealisationofUN Goal 1, poverty reduction.
Microcredit-promotingeconomically sustainable self-employmentThewomenarethepillarsofthefamily.Theyworkinthefields,selltheir produceatthemarket.Ortheyearntheimportantcontributiontotheir livelihoodwithsewingandsimilaractivities.Withamicro-creditasstart-upcapital,theyhavetheopportunitytoexpandtheirsmallfarmandbuy asewingmachine.Alocalwomen'sgroupadministersthefunds,and onlymemberscantakeoutaloan.Thus,thewomen'sgroupisalsothe controllingbodyforthefund.Thereismaximumtransparency.Theloan is interest-free and is paid back in short term, but in small instalments.
What are microcredits and how do they work?Microcreditisthetermusedtodescribemicroloansthatareusually grantedinterest-free-asystemthatisbeingusedmoreandmorein developingcountrieswheremanypeoplelivebelowthepovertyline.Micro-entrepreneurs in particular are supposed to benefit from the loans. Anexample:Aseamstresswantstobuyasewingmachinetosewschool uniformsthatshecanthensell.However,shedoesnothavethemoney, about100euros,forthepurchase.Abankwillnotgiveheraloanbecause shehasnocollateral.Throughourinternalmicrofinancefund,shehasthe possibilitytogetthismoneyfromus.Sheturnstothespeciallyformed committee,whichdecidesonhercreditworthiness.Ifshepresentsa goodconcept,shegetsthemoney,interest-freeofcourse.Shethenhas to pay it back within a certain period of time.Helping people to help themselves Manywillaskthemselves,whydon'twejustgiveherthemoneyorthe sewingmachine?Withourhelpforself-help,weensurethatacertain responsibilityislearnedandthattheborrowerdevelopssustainable, feasible business plans. DuringourvisitinJanuarythisyear,we"symbolically"handedoveran amountforthemicrofinancefundfromourdonationfund.Asthe disbursementgoesthroughvariousinstances,itisensuredthatthe allocationoffundsistransparentandconscientious.Thecommittee, whichconsistsmainlyofwomen,wastrainedthisweekbyCobbyAdjanor, the coordinator of our microfinance project.
The Kekeli micro-loans - here we go!Besidesbuildingwells,oneofthegoalsoftheKekeliTogoassociationis tosupportthepeopleinKlologowithmicro-creditsandtohelpthem achieve greater economic security. InFebruary,thevillageboardheldameetingwiththepersonincharge, whowasnominatedbytheassociation'spresident.Thefour-person committeedefinedtheguidelinesthatwouldauthorisethemtoreceive themini-credit.Fifteengroupsweredefinedthatcouldsignificantly expandtheireconomicactivitieswithmini-credit.AttheendofMay,a meetingwasheldwiththerepresentativesofallgroups,strictly observing the Corona-related distance rules. Thefollowingkeydatawereset:Theinterest-freeloansof40,000FCFA (about60Euros)eacharetoberepaidininstalmentswithinsixmonths; theborrowerspayamembershipfeeof2000FCFA.Accordingtothese criteria,50peoplewillreceiveamicroloaninthefirstmonth;fromthen on,betweeneightand14morepeoplewillreceivetheloaneachmonth. Thus,inthefirstyear,205loanswillbegranted,andfromthenon, approximatelyanother168peryear.Sincetheloansarepaidbackquite quickly, there is always money in the fund. Thecommitteeadvisestheborrowers-mostofwhomarewomen-on howtoinvestsothatsustainablesuccesscanbeachieved.Giventhe currentconstraintsindividually;ajointorganisationisplannedforlater to accompany the step into new gainful employment.(08. 06. 2020)
We thank the following companies for their support!