Loans for Livelihoods
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Creating a loan fund for women who are starting new business ventures, with repayments redistributed as new loans.
WHY ARE WE DOING IT?
We are doing this because there are limited opportunities for employment for many women in the Kuttiyapulam village. As a result, they are only just meeting their families’ very basic needs. The women want this type of revolving fund so they can start their own business.
WHAT IS THIS PROJECT ABOUT?
This project is about providing women (who are often widows, managing their households) with the opportunity to start a small business so they can earn a regular income and rely less on aid.
The loan fund is a way for these women to access the capital needed to start a small business, and the loan will be repaid in instalments that are within their means.
HOW WILL IT 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 women beneficiaries are currently living in very basic conditions, not knowing what the future holds. The loans provide an opportunity to build a future.
- The beneficiaries 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 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.
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 want 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.