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<\/a><\/figure>\n<\/div>\n\n\nThe local community group of five ladies and two men under the chairmanship of a local pastor lends from 50.000 shillings to 500.000 shillings depending on the business plan and experience of the borrower, primarily to poor widows, ladies and orphans. Around 6 to 8 projects at any one time. Most of the micro-businesses involved buying and selling clothes, food and a variety of products in the markets as well as tailoring, all of which produce daily cash.<\/p>\n\n\n\n
Typical Bank for the Poor micro-businesses<\/p>\n\n\n\n Every loan is repaid monthly and all the loans have been repaid from earnings within six months maximum, often in less time than that. The community group ask for a 2% interest on the loan amount and this increases the capital fund. This extra is given very willingly by the borrowers because they know that the 2% will help others to borrow and start a micro-business.<\/p>\n\n\n\n The local commercial banks charge at least 18% but never give loans to the poor anyway.<\/p>\n\n\n\n By 2006 the community group had grown the fund to 2,500,000 shillings and have had no business failures at all. We were able to add a further 1.000.000 shillings to the capital fund as we were very pleased with the management and the accountancy. It was very impressive to see how these widows and their children had prospered through micro-enterprise. Children can go to school because there is money to pay for their school fees. With education they will be able to get good jobs and provide for their families.<\/p>\n\n\n\n It was everything we had hoped for, and more.<\/p>\n\n\n\n We have Banks for the Poor in Uganda, India, Burkina Faso and Cameroon. If you would help us with a gift we will be able to open more projects for widows, orphans and for poor people who are more than willing to work, and have skills but have no hope of getting any help at all from a commercial bank. There is no better use for money than using it to give hope to the poor.<\/p>\n\n\n\n We are the bank that likes to say Yes.<\/p>\n","protected":false},"excerpt":{"rendered":" The Aduku model from northern Uganda In northern Uganda we had banks in three villages but two of the schemes were wiped out by terrorism a couple of years ago when a lot of people lost their lives in just one night. Aduku village was not touched by the violence, thankfully. In late 2003 … <\/p>\n<\/a><\/a><\/a>