Lend with care

Rotary in Cannock support the initiative “Lend with Care” an initiative from poverty-fighting charity, CARE International UK.

Its aims are to help poor people in developing countries to access small “business loans” to start or expand their business. Rather than receiving a one-off charity donation, these entrepreneurs pay back their loan over an agreed period.

This is known as micro finance. Microfinance is the provision of financial services for low-income people, this includes micro loans. The provision of fair and effective financial services is central to addressing poverty.

More than 2 billion people in the world lack access to basic financial services such as bank accounts and loans, it is the poor who are typically excluded from these formal financial services.

So, how does it work?

Lend With Care have set up Micro Finance Institutions within countries that need help.

The applicant presents a business case to the Micro Finance Institution within their country and requests a loan. If the business case is viable, it is approved and a repayment schedule is agreed.

The loan application is entered onto the Lend with Care website giving information about the applicant and what they intend to use the loan for.

Individuals and charities register on the Lend with Care website and open an account with a sum of money; they are then able to make loans of any amount within their funds, from £15 upwards.

Typically, a loan application will be fulfilled by several small amounts, it is rare for one charity or individual to loan the full amount. The applicant receives all the money from lend with Care once the total amount has been funded. They do not pay interest on the loans.

Lenders receive repayments into their online lend with Care account for their element of the loan, all of this is organised by Lend with Care and the account is credited with repayments each month.

That money can then be loaned again to another applicant, so, effectively your money is repaid and you loan it again and again, this is known as the Loan Cycle.

So, How does this work within Cannock Rotary?

We started with a £500 initial project amount and over the years we have increased this to £3000.

We have then used this money by providing small loans to entrepreneurs and their monthly repayments have been reinvested in further loans to other entrepreneurs.

So far, we have made 308 loans

We have lent in the region of £19, 592 by continuous reinvesting our initial fund.

594 entrepreneurs have been helped and 362 jobs created

We never loan the full amount requested, we simply add to the loans made by other organisations, and on a monthly basis with the monies paid back to our account we make further loans.

Typically, the loans we make range from £15 to £60 to any individual applicant.

Rotary Clubs across the country are big supporters of Lend with Care, in our Rotary West Midlands and Staffordshire District, 41 Clubs form part of a “Lend with Care Team” in total the team has loaned an amazing £429, 909.

Lend with Care is just one of our international projects but, as can be seen above, the money we have invested is used again and again meaning our £3000 has been multiplied over 6 times so far and, will continue to be used so into the future.

Around 80% of entrepreneurs supported by Lend with Care are women. The majority of people living in poverty across the world are women, and women are disproportionately excluded from access to financial services.

Studies have shown that supporting women can have the greatest impact on poverty.

Want to know more then please visit: www.lendwithcare.org or contact us at Cannock Rotary

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