The microcredit system is the ingenious idea of the Nobel Prize winner Muhammad Yunus.
If parents are in a position to earn the money for their children’s school fees, they no longer require the support of others.
Appreciation leads to self-reliance.
In simple terms this project system works along the following lines:
· 5 women form a cooperative and are given 4 - 6 months of training in their requested area (e.g. pig, hen, cow or vegetable farming).
· After their training the women are provided with the necessary credit to start their independent venture - which lies between 120€ and 400€ depending on their requirements. This is called a micro credit because of the relatively small sum involved.
· Each woman in the group is liable for the credit of each of the other group members.
· In the first years these independent women are supported in their project by an adviser.
· The interest paid on the credit is used to pay the adviser.
· After 2-3 years the credit is repaid and this forms the basis of credit for further projects.
By the way: the repayment quota is 98%, an amount that bankers across the world dream of!
The micro credit system provides for the future: Would you like to help a family to become independent?
Here are some examples of starting costs:
Vegetable farming 120€
Pig farming 140€
Cattle farming (meat) 200€
Cattle farming (dairy) 400€
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