Small Loans with Lasting Effects

«The Micro-Enterprise Scheme offers small loans on very favourable terms enabling people to start their own businesses and establish financial independence»

A ‘micro-loan’ is, as the name implies, a small loan granted to people who wish to start their own business, the loan system is based on the principles of helping people to help themselves – Teaching a man to fish rather than giving him a fish. Beggars do not normally have even the slightest chance of getting a loan, let alone one on easy terms, they are at the mercy of money-lenders and profiteers, who charge extortionate rates of interest.

Establishing a Source of Livelihood

The Micro-Enterprise arranges small loans of between 80.- and 450.- Swiss francs on favourable terms, giving people the chance to escape from the need to beg and to start their own small businesses.

Those who wish to improve their circumstances are taught various skills; making soap, candles, floral decorations and a host of other products. They can then use their micro-loan to buy the materials needed to start up production on their own. In large towns, like Kolkata, micro-loans have become greatly sought after as a means of acquiring a cycle-rickshaw. The owner of such a rickshaw can begin to earn his livelihood on an independent basis.

Help is ‘Guidance and Shared Responsibility’

The borrowers are carefully guided by Bartimæusproject workers. In groups of five, borrowers undertake to share the responsibility of repaying the loan. In 2008 no less than 1'000 micro-loans were granted, and the borrowers were chiefly women. Since the initiation of shared responsibility the repayment rate has been close to 100%. Experience has shown the businesses tend to become autarchic in a very short time.