Loan to fund my empowerment project

Entrepreneur

About Me

I am a young energetic man aged 30 years from Muranga who is married with one kid. Muranga is a small town in the central Region of Kenya, located about 40 km from Nairobi, Muranga has a total population of about 5000 people, most of whom are migrant workers from other towns and villages within Kenya. I am a Certified Public Accountant by profession and offer accountancy, tax services in my company Larmtech Accounting Agency and also work as a program volunteer and overseer at Organization of Muranga Youth (OMY).

My Business

Muranga is mainly an agricultural town with mostly subsistence farming. The main crops are; maize, cassava, banana, water melon, and groundnuts. Most of these inhabitants are unskilled workers and like many other communities in rural communities, most people are poor with little or no infrastructure, poor housing conditions, no internet services, shortage of power supply, etc. Schools, health facilities, roads, and access to clean water. A house of about 8, i.e. mother, father and children are given just a two room house, one for parlor and a single room for both parents and children. These children, who spend the night with their parents, see their parents have sex and as it is with children, what they see, they try to practice. So when these children leave their parents for secondary school in Muranga, they get engage in promiscuity behaviors and most of them end up been pregnant. These girls are abandoned by the boys who prefer to look for other girls which they consider preys. The girls are left at the mercy of God, since most of their parents will not want them back home with pregnancy. Most of them have to either abort or put to birth. Once these girls put to birth, a new tale of sorrow for these young mothers emerges as these young mothers can barely provide for themselves and their children.
As a possible solution to these problems, I founded the Organization of Muranga Youth (OMY) in the year 2013 and this project teaches these young mothers business skills, by using a business incubation process. Youths are encouraged to start and learn how to operate businesses that are in line with demand in the community. There is a clear correlation between the success of a business and its relevance in the community, businesses that are not relevant in the community are not be supported and as such have a higher possibility of failure.
The OMY works in partnership with some youth and young mothers so as to provide low interest loans to these women. The loans attract an interest rate of 10% per month on any outstanding balance. These loans are disbursed without guarantors or even tangible corrateral and are based on trust. The interest charged is used to drive sustainability of the project, as the capital and interest can cover some of the operational costs and also generate funds for further loans. This creates a revolving pool of funds effect and it also teaches these girls important lessons around the value of money, credit and how to manage both. Currently OMY has 43 members who hold a total of $3,654 in revolving funds and $300 in administrative funds.
The main vision of the OMY is to create an empowered society where the vulnerable and disadvantaged members realize their full potential and achieve their dreams in peace and harmony.

Loan Proposal

I need a loan to support a new primary target population for the project which is young mothers. Over 30 or more people will benefit from this project both directly and indirectly. 6 young mothers will be provided with loans every three months. Besides gaining valuable skills, knowledge, and expertise, trained young mothers will be able to earn an income and improve their standard of living. Community members will have access to new services provided by the young mothers, as well as, other services that may arise as a result of the project, including access to information and communication technology, and an increased market and economic base.
Loans provided to these mothers will be evaluated based on business size, potential demand for the business and thus potential income, commitment, and understanding, of the loan recipient of repayment, and the nature of the business every month. Loans must be serviced from the proceeds of the business; as such, there is 100% likelihood of repayments.
THE PROJECT GOALS
- To empower the youth and women in the community by providing them with the necessary skills and knowledge to enable them to become self-reliant.
- To open free accounts for each of the young mothers who will take part in the project.
- To instill and develop good business management strategies.
- To sensitize, mobilize, and unite youth and the community and help them face all challenges positively.
PROJECT OVERVIEW
The project will commence with a training course on business incubation and the course will seek to address the following;
- Help with business basics
- Marketing assistance
- Help with accounting/financial management
- Access to bank loans, loan funds and guarantee programs
THE PROPOSED PROJECT COSTS
Administrative expenses will be based on the assumption that the cost of managing a loan in 15% of the value of the loan. This will provide for the administrative costs of originating and disbursing the loans. Higher loan amounts require better origination, assessment and collection processes. This approach will also take into account that longer duration loans will cost more to administer and carry a higher risk.
PROPOSED OPERATIONAL EXPENSE
- Administration costs 300 $
- Loans 2000 $

Feedback

Loan Info

Lenders