Micro Loan Fund

A full review was done of the existing funds in two areas of the community – the Kakulu Revolving Fund and the Chilunga Revolving Fund – with the trustees. A few anomalies and misunderstandings in managing the loans was sorted out and the trustees were pleased for that guidance. That being said the funds are both performing well and providing much needed support to the community for economic development. So far there have been no defaults and all the money is accounted for. This is very pleasing as several other organizations we have spoken to in Zambia have attempted micro loan funds and have failed

Much of the money was borrowed late in 2009 to buy seed and fertilizer for the new farming season so it is still outstanding. Milt and Gordon visited several fields belonging to people that had borrowed money for farming and saw that it has made a big difference to the quality of their crops, so that their yields will increase significantly.

We also visited a few people to see and hear about the businesses that they have started through having a loan. We were also asked to attend a meeting of several other loan beneficiaries to receive their letters of appreciation and hear some of them speak of their experience with the fund.

An additional 2.8 million Kwacha (US $ 600.00) was added to the fund bringing the total to 13 million Kwacha (US $ 2,800). With an average loan being 500,000 kwacha this means that 26 “loan units” are rotating on a 3-month cycle.