Lendwithcare in the Philippines | Providing more than just microcredit

Lendwithcare on location in the Philippines

Carlito Curacha, a farmer who received a microloan through lendwithcare

© CARE/Jo Broughton

Jo Broughton, CARE International UK's PR & Communications Executive, visited lendwithcare's microfinance partner in the Philippines, SEEDFINANCE, and tells us how microfinance institutions (MFIs) can (and do) provide more than just microfinance ...

I've come to the end of an incredible visit to Cebu island, Philippines. In the past 3 days I have visited 20 lendwithcare entrepreneurs and have been blown away by what they have done with their loans, the opportunities they have created and embraced.

Like every lendwithcare visit, it has been characteristically heartening to see how these businesses are thriving because of access to vital capital. A typical story is to see that within a year or so of investment, coupled with financial and business advice from our partner MFIs, entrepreneurs have managed to double or triple their income, often more. The impact this has on a family is, obviously, always positive and often life-changing.

But this trip has highlighted to me the importance of the services offered by our partners above and beyond the provision of loans. These services are impressive in both range and quality. Lendwithcare, on principle, will partner only with MFIs that offer more than just loans. We want to ensure that our entrepreneurs are in good hands; that they are being given the right advice, are being encouraged to save as well as or, in nearly half of cases, instead of borrowing. That they have access to healthcare and insurance.

Here in Cebu, lendwithcare partners with SEEDFINANCE, a socially responsible microfinance institution initially set up by CARE, now independent. In turn, SEEDFINANCEpartner with regional co-operative associations, whose activities benefit their members and annual dividends are reinvested to provide for their community. I was lucky enough to meet and be shown around by the proud and dedicated staff of one of these co-operatives.

LMPC staff © CARE/Jo Broughton

Lamac Multipurpose Co-operative Association serves the people of a remote valley in the coastal mountains of Cebu. This cooperative was formed in 1973 when 70 local farmers invested an initial capital of around $1 each. Their goal was simple yet vast: to work together to meet the needs of the people living in a valley with no electricity, no running water, no schools, no healthcare and no access roads. 

Today, LMPC is 25,000 people strong. Ninety per cent of the valley’s 5,000 households are members of the cooperative and its total assets amount to 634 million pesos (approximately £10m). Together, and in just one generation, the members have built 21 kilometres of road along the mountainsides, providing access to roads to the two nearest towns. They have provided electricity to all homes and water to 600 homes, and access to clean water for the others. They have built a school. Their consumer division meets the people's retail needs; the production division encompasses the agriculture that feeds them as well as production of essentials like soap and candles.

LMPC now run an eco-tourism centre, which includes community resources like a covered sports hall, large catering venue for celebrations, ponds for fishing and a 1-hectare intensive farm for small-scale production and education. 

 A generation ago, the people of Lamac had no access to healthcare and relied on faith healers to treat the sick. Now, for an affordable monthly sum, the cooperative provides families with access to good quality healthcare in an accessible health centre. They are insured against loss and bereavement. And children no longer have to walk 14km each way to get to school, so school attendance is now 80% where two decades ago it was close to zero.  All achieved, according to LMPC, through ‘active volunteerism’: early members contributed whatever talents and resources they had for the benefit of the community.

Now, through Lendwithcare’s partnership with SEEDFINANCE, we are able to provide loans to the entrepreneurs of LAMAC, helping their small scale businesses go from strength to strength. But as LAMAC demonstrates, loans are just a small but vital part of the picture. By partnering only with organisations who offer these services, lendwithcare can ensure that we are supporting whole communities.

I have visited lendwithcare entrepreneurs in three continents and I always come away feeling heartened by the stories they tell me about the ways they have invested their loans and how this has improved lives for them and their families. This isn’t charity, it is investment- and these people invest wisely and conscientiously. It is wonderful to see, through partnering with organisations such as SEEDFINANCE, lendwithcare is supporting such life-changing investment on a community-wide scale. 

By Jo Broughton, PR & Communications Executive at CARE International UK
You can follow Jo on Twitter @Jo_CARE_Intnl

For more information about lendwithcare, please visit www.lendwithcare.org 

Conveniently Face Monetary Crises

Facing money crisis is common for disabled individuals owing their inability to work. Hence, they will not be capable to earn a stable income for their living. However, nowadays they need not undergo any such troubles due to their disability problems. Are you one among such person suffering from the troubles of disability? Is the stress of monetary shortage troubling you? Then selecting for loans for disabled service can certainly be a blessing in disguise for you. Desired amount can be easily accessed through the assist of loans for disabled without any hassles.

Upon approval you will be provided with sufficient funds depending upon your requirements and your repaying ability. Further, you can enjoy a flexible time period in order to payback the borrowed cash. All categories of differently able can qualify for obtaining these loans. However, as a borrower, you may acquire the assistance of DSS benefits owing to various reasons like unemployment, old age, physical or mental disabilities and ailments.

You will have to fulfill certain painless and simple per-conditions prior to getting the disabled loans approved. For this you must have attained the age of 18 years and must be availing DSS benefits for the last 6 months. Further, you should possess a valid and running checking account. When once you are capable to meet these conditions, you will be able to obtain these loans approved and cash will be wired directly into your account.

The most important characteristic features of this financial assist are that you need not provide any sort of security in the form of valuable assets. Reasonable rates of interest, hassle free refunding plans and approvals within 24 hours are some of the benefits you can enjoy.

It is possible for you to obtain advantage of all these benefits by filling an online application procedure that requires minimal details to be entered in the application form. You can enjoy the cash for a happy living.

Disability Loans- Immediate Financial Help Foe Disabled

Are in need of urgent cash to eliminate your financial worries? For a disable people it is really hard as they don't have any work. But, with us you don't have to be anxious as Disability Loans are to provide monetary aid. These loans are specially framed for those who are having physical or mental disability or physical ailments. Now, you can handle urgent financial needs with this loan.

Loans For Disabled can be availed by fulfilling little eligibility criteria. These are as follows:

You should be a citizen of US, minimum age of applying is 18 years, must have DSS benefit for last 6 months, And a checking account on your name.

Through this, you can obtain any loan amount from $100 to $1500 to meet your financial urgencies. Its repayment is flexible and you can repay within 1 month.

It is an unsecured loan so there is no necessity of pledging collateral. Now, you don't have to worry about security to keep against the borrowed loan. You are completely free to utilize borrowed in meeting needs and desires such as for paying hospital bills, car repair, home rent, shopping and traveling expenses, school fees, credit card dues, old debts, making home improvements and so on.

No matter your credit records are good or bad, you can still apply with disability loans without any credit check formalities. Thus, all those persons who are having bad credit scores such as CCJ’s, defaults, foreclosures, arrears, missed payments, late payments, bankruptcy and so on can also obtain this loan.

By the aid of advances in technology, you can apply online without any confused paper work. It is a time saving process and do not involve any faxing. You can fill up our online application from the comfort of your residence as well as office.

Disability Loans- Quick Funds For The Physically Challenged

All humans are blessed with unique gifts from the creator and enjoy live occupied of surprises. A few of us though, are not as gifted physically are suffering from some problems known commonly as physical or mental disabilities by the people of the society.

This disability brings unexpected halt in life. Also, in several cases, people suffer from accidents that depart them with injuries that don’t let them forget the accident for life.

It becomes hard to continue a normal life in such circumstances and also availing a loan for such people becomes equally difficult.

As it is really said, “When one entrance is closed by the almighty, there is always another one opened”. Disability loans are loans for those people with particular abilities to assist them with their expenditures pertaining to all their requirements from normal to extreme.

One can apply for these loans online through a simple application form without much complexity in it and soon avail the finances which can be used for all kinds of expenses like house rent, any taxes that are pending to be paid, any bills that are to be paid and some repair work that has to be done.

Disability loans come with a group of options and along with very effortless repayment options. So the finest deals are available online along with a promise to offer the best.

These are usually obtainable with application anytime and anywhere via online, and aside to this generally the aspirants are not charged with any application fee or rather processing fee for applying.

People who are disabled and want quick finances can apply for these loans and ease their tensions.

Dr Ajaz Ahmed Khan: What role for Islamic microfinance?

Conventional interest based microfinance has come under increasing scrutiny and its benefits questioned in recent years. Does Islamic microfinance present a viable alternative? Quite possibly.



 
Islamic, more correctly termed Shari’ah compliant’, finance is based on principles that include linking transactions to tangible economic activities, excluding financial speculation and excessive uncertainty, and funding only socially productive activities, in addition to the well-known stipulation against charging or paying interest. The core tenet of Islamic finance is to encourage ‘fairness’ in business and trade between different parties.

Successful Islamic microfinance programmes can offer several potential advantages. They may engender higher rates of economic growth as evidence suggests that microentrepreneurs are willing to undertake more profitable ventures if risk is shared. They can build greater levels of trust and understanding between lender and borrower because of the deeper relationships built through partnership rather than a service provider-client relationship. Because only investment in socially beneficial activities is permitted, they may promote ethical investment and business practices among microentrepreneurs. Indeed, Islamic finance shares many of the features of socially responsible finance.

It could also be argued that by adhering to Islamic financing principles some of the well-reported ‘excesses’ of interest-based microfinance, such as over-indebtedness among poor clients, might even have been avoided. This is because risk is shared and lenders stand to lose their capital if the funded venture is unsuccessful. Neither can they insist on repayment if borrowers, through no fault of their own, are unable to repay on time.

Despite the fact that the Islamic microfinance sector is growing though, it still accounts for less than 1% of total global microfinance outreach. While many predominantly Muslim countries such as Bangladesh and Indonesia have vibrant microfinance sectors, Islamic microfinance only has a limited outreach. Since many Muslims (estimates vary from approximately one-fifth to almost half of the population) refrain from accessing interest based finance for fear of breaching their religious beliefs, it is reasonable to conclude that the unavailability of Islamic microfinance constrains the development of many Muslim owned small businesses.

Why is Islamic microfinance not more widespread? One of the main reasons is that Islamic financing – which includes profit and loss sharing techniques and the purchase and delivery of items to microentrepreneurs – is typically more time consuming, costly and complicated to manage than interest-based microfinance. Furthermore, while interest based microfinance institutions have had ready access to funding (arguably some institutions have had too much investment directed at them which has in turn encouraged over lending), the development of Islamic microfinance has traditionally been constrained by lack of investment. As a consequence, Islamic microfinance providers generally remain small with an average client base of just 2,400. Finally, with a few notable exceptions, governments have generally failed to provide appropriate regulation and supervision for the expansion of Islamic microfinance or developed comprehensive guidelines on microfinance accounting principles, pricing methodologies and Shari’ah audits.

What can be done to encourage the development of Islamic microfinance? Increasing operational efficiency and developing sustainable operating models that increase scale and outreach are absolutely crucial. Increasing interest from Islamic investors, such as the Islamic Development Bank as well the many commercial Islamic financial institutions, may alleviate the traditional constraint of lack of investment. However, this must be accompanied by a concerted effort to increase technical expertise and training opportunities, as Islamic microfinance generally requires a greater level of staff involvement and understanding of microentrepreneurial activities. Islamic microfinance providers also require a better legal and regulatory framework, not only to monitor their activities, but also to encourage them to experiment, innovate and develop. Apart from ensuring that products and processes remain authentically Islamic, there also needs to be greater clarity and understanding on what qualifies a service as Shari’ah compliant by seeking the necessary support from qualified Islamic scholars. It is imperative that Islamic financial products and services comply not only with the letter of Shari’ah but also the spirit. Otherwise, there is a real danger that Islamic microfinance will merely mimic interest-based finance.

lendwithcare.org hopes to include Shari'ah compliant microfinance partners from Pakistan and Indonesia from January 2013. Potential partners must meet our eligibility criteria and this means prioritising social development as well as possessing strong financial performance. As part of our due diligence procedure we always visit prospective partners and the entrepreneurs they support to understand more of their policies, procedures and impact in the field.

By Dr Ajaz Ahmed Khan, Microfinance Advisor at lendwithcare.org

This article was first featured in Business fights poverty on 17 December 2012.
 

Day Three: BBC3's Stacey Dooley returns to Sarajevo to meet more lendwithcare.org entrepreneurs

On her final day visiting lendwithcare.org entrepreneurs in Bosnia-Herzegovina, Stacey Dooley returns to Sarajevo and meets Mediha ...

Stacey with Mediha in her tailor shop in Sarajevo© CARE/Jon Spaull

Today we were back in the capital Sarajevo. I met Mediha, who runs a tailoring and craft shop, a business she started when she lost her job after the war.

Starting from home, Mediha worked hard to move her business into small premises. And now with help from Lendwithcare, she has a thriving business with the equipment she needs.

I could tell how much the loan had meant to her. She said it was the only way to get her family back on their feet after the war and broke down when she talked about the journey she'd been through.

Mediha wanted to thank lenders back in the UK who'd supported her to grow her business and urged them to continue to provide the chance for Bosnian women to start a business of their own.

Although I've only been here a short time it's become very apparent, very quickly, just how important these loans are, with one of the entrepreneurs telling me she literally sees this as the only option for women in Bosnia. Lendwithcare is a fantastic opportunity for people who ordinarily would have no other option. 

And with Christmas around the corner I guess there's no better time to check out Lendwithcare.org and maybe buy your pal or loved one a gift voucher.

Get lending! Merry Christmas :-)

Day Two: BBC3 journalist, Stacey Dooley, visits lendwithcare.org entrepreneurs in Srebrenica

On her second day visiting female entrepreneurs in Bosnia-Herzegovina, BBC3's Stacey Dooley travels to Srebrenica to see how microloans provided through lendwithcare.org are changing lives.

BBC3's Stacey Dooley with Sefika and her son, Adnam© CARE/Jon Spaull

Second day here in Bosnia. Today I spent time in and around Srebenica. Srebenica is significant in Bosnia - this is where the genocide took place in 1995. At the Srebenica memorial, we heard first hand about the thousands of men and boys who lost their lives, from someone who managed to survive. Seventeen years on, the war has finished, but the problems created by the war are still visible. Lives were destroyed then and people are still trying to rebuild them now.

Just outside Srebenica we met Sefika, who's 21 and married with a 20 month-old son, Adnam. It was a real pleasure spending time with Sefika. She was able to explain very clearly the benefits of being involved with Lendwithcare. She told me if it wasn't for the opportunity of a loan, she doesn't think her husband's wage would be sufficient in supporting the whole family.

Sefika used her loan to buy a cow. Initially the cow was used to feed her baby and now the plan is to sell the calf, which will enable her to continue supporting her family, including her young son Adnam.

Sefika lost her father during the war and her brother soon after. She tells me her, and all of her girl friends who are of a similar age - early 20s - have no real hope of becoming employed any time soon, which unfortunately I'm learning is a massive problem here - youth unemployment. Despite being up against it, Sefika was so welcoming and incredibly positive about the future. Sefika wanted to thank lenders in the UK. She said she was very grateful for the loan and had invested it wisely.

To read more about women like Sefika, who are using microloans to rebuild or improve their lives, please visit the lendwithcare.org webiste: www.lendwithcare.org 

Lendwithcare.org is an initiative of aid and development agency CARE International UK and is supported by The Co-operative