Aims & Objectives:

Aim of project:

Micro finance program focuses on credit delivery to rural households and enterprises. Three types of credit projects are envisaged. Viz.

a)     Poor women are eligible to take micro loans of up to Rs.5, 000 for purchase of kids for rearing and selling at local market. The borrowers are encouraged to use the income from this activity towards payment of educational expenses of their children, especially for girls. The repayment is at the time of sale of goats and sheep

b)     Small farmers are eligible for taking micro loans up to Rs.20, 000 for purchase of farming inputs. The loans have offered at sowing and repayments collected at harvest.

c)     Small and micro rural enterprises (non-farm) are eligible to take loans up to Rs.20, 000 for investing in increasing profit margins. The repayments are to be collect in monthly instalments or tied to returns from the business.

Methodology

BWA will establish on-lending systems and mechanism and tap onto resources of Pakistan Poverty Alleviation Fund (PPAF) and other NGOs. By establishing partnership with Orangi Charitable Trust (OCT), a member of the Pakistan Micro Finance Network, BWA has started building the only-lending system and proposals have been floated through OPP to acquire PPAF funding.

The establishment of on-lending mechanism includes:

§         developing procedures and indicators to appraise village organisations

§         training village activists in co-operative and managerial skills

§         establishing targeting and recovery mechanism through demonstration and encouraging good practices

§         building management skills to monitor and guide operations