Micro-finance

The positive effect is that our students get an additional incentive after finishing the course and we help them to get a better future. Microfinance offers the poor a way out of poverty. If we are to help poor people overcome poverty, we must recognize that it is important to them to have the means to find their own solutions. Microfinance is a powerful aid in doing this. It gives poor families a chance to improve their livelihoods through their own economic activities. Often, the one thing preventing the poor from raising their standard of living is lack of access to financial services that would help them start or expand their businesses or prevent risks. The benefits that microfinance brings to poor families go beyond increased income and employment. It also provides greater opportunity for children to go to school, for families to obtain health insurance, and for the poor to make choices that best serve their needs. The Satu PerSatu foundation offers microfinance to all people who have finished all phases of a course which have been mentioned in this business plan. For example, if a woman passes her exam for all sewing classes the foundation will provide a sewing machine under certain conditions as mentioned below. With the sewing machine the participant can start her own small scale business and make her own living. The payment terms to Satu PerSatu have have been set to every week for a half year. The total to be paid back amounts to 50% of the value of purchase. The other 50% will be donated by the foundation. The 50% has been set since a higher amount to be paid back to the foundation would result in no interest. This has to do with culture. In general the following conditions have been set to provide microfinance:  The first selection of participant who may apply for microfinance is conducted by the staff and the instructor;The participant should have finished the course at highest level given; Their family circumstances are checked by the staff and should be low compared to the standard in the community; The use of the equipment may not have a hobby purpose, but may only used to start their own small scale business; The participant may not sell the equipment within one year; The participant will be asked to think about a small plan why the participant intends to apply. This plan will be discussed with the local staff; The payment term is weekly during half a year;No interest rate is charged;If one participant is not able to pay, all the others who received the microfinance must contribute to fulfil the missing payment; The minimum age is 17 years old; The applicant must sign the contract.Not everybody needs microfinance because some students are able to work at a company after finishing the course. The budget for micro financing is given below and amounts to € 1.250 per year. The amount of participants who can be assigned for micro finance is budgeted as a maximum target.