Loan Fund for Women
HOW DOES THE FUND WORK?
The fund has been designed as a revolving loan fund. This means that once the initial loans are repaid, that money is then given out as new loans to allow more women to start new businesses.
Initially 24 families will receive a loan of Rs 30,000 (approx.. AUD$250) without interest. The project will provide loans for businesses such as tailoring, snack shops, and poultry and goat rearing.
The revolving nature of the fund means it is self-sustaining, provided the loans are repaid. Loan repayments are within the capacity of the beneficiaries so they will be less likely to fall behind on a payment. In addition, Palmera will work to monitor the loan repayments and address any difficulties with repayment, if they arise.
- Women receiving the loans will build confidence and independence, relying less on aid.
- The women can provide for their families, for instance, they can send their children to school.
The residents of Kuttiyapulam Village in Northeastern Sri Lanka were resettled into their villages and lack basic facilities. There are limited opportunities for earning an income. As a result, women-headed households are struggling to build a life.
The women in this village wish to do self employment activities such as small business, goat rearing, poultry and tailoring in their homes, as they do not want to go elsewhere for work. They want this revolving loan to earn an income for their families and build a life after years of just getting by.