Hello Anna
Micro credit, like any other lending system actually needs two sides; investors and borrowers. If there is no investment to start with, then the borrowers must start out as investors. If it's not just going to be a savings club, (with payout at the end),then it has to turn into a Ponzi scheme, which has as bad a reputation as pyramids. Since Jean-Claude is dead set on the plan, I could show you something that works on paper, that wouldn't expand out of control like a pyramid. Getting any credit advantage makes it risky for new starters, if borrowers start defaulting, but they could get the money in half the time it would take them to save it. I just used 10 payments of $10.00 to make it easy to follow.
INVESTORS- TOT. PAYMENTS- $ IN BANK - PAYOUT TO INVESTOR IN LINE
1------------- 10------------- 10-------------
2------------- 20------------- 30-------------
3------------- 30------------- 60------------
4------------- 40------------- 100-------------
5------------- 50------------- 150---------
6------------- 60------------- 210------------- 100-------------
7------------- 70------------- 180------------- 100---------
8------------- 80------------- 160------------- 100-------------
9------------- 90------------- 150------------- 100-----------
10----------- 100----------- 150----------- 100-----------
10----------- 100----------- 150------------- 100------------
10...
This leaves money in the bank to cover defaults. If a small amount of interest is charged the payout could soon be moved ahead when the money in the bank reaches a safe level. As you can see, after 10 payments the first investor drops off the list and it can continue indefinately. Payout amount or No. of payments can be adjusted.
All credit is risky or maybe illegal without the proper licence or whatever. An accountant could show you some tried and tested plan but of course that would cost money. Anyway, I just thought you might be interested in looking at that.

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Rick Ellis

Microlending has a wonderful success rate in almost every country of the world. Yes, there are crooks in all areas but run correctly and honestly, it is great. www.farmsinternational.org,Grameen Bank, Finca, etc. is proof. It is run locally by locally chosen people.

Thanks everyone for your feedback on this matter. I'll get Jean-Claude to review everything, revise a plan and hopefully you can all discuss the next idea too.

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Anna Soper

Dear All,
Thank you for your contributions!

The main goal is to find a good ideas how we can start this activity in a sustainable way. I like your comments and examples.
I would like to add some idea to make things clear so that we can progress in light:

Our micro saving should work with FARMERS AND YOUTH ENTERPRENEURS organised in youth coalition Organisations and in women groups as well as organisations in grassroots and urban communities.

We can make small micro grants, provide technical support for income generating projects and support innovative small project that make communities members to become AUTONOMIOUS in their community and their families (end poverty! )

We should also set up this program, wish the AIM OF IMPROVING AGRICULTURE AND PREVENT OUR CLIMATE. We are targeting:

-SMALL FARMERS: (in grassroots at this level)
-Small youth entrepreneurs: youth small projects with higher impact

We will start life skill courses to enable our members in this program to understand about Finance management and keep up with the rapid evolution of this fields.

The perspective of the program will be to offer a wide range of services, from sophisticated banking, communication and ICT and management of saving and micro finance programs. Should continue consulting (our Neighbours) in the various fields of development in banking, as well as financial management matters.

Another perspective is:
-Launch a Community medias NEWS program: REPORTING AND COMMUNICATION SCHEME: Story telling on our programs; to produce programs (on DVD, Journals, objective and key news) on BCDC’s activities.

Thanks
JC

Hello J.C.
I thought you were trying to find a way to simplify things and find a starting point for your financial project. I don't know why you feel the need to find complicated solutions to what could be simple problems. Instead of narrowing things down, your last post blows everything up into something that the World Bank wouldn't understand. It sounds like you are planning to send everyone involved to a four year Advanced Business university course.
What it really does is leave us in the dark, again, as to what your primary goals are, and what the first steps should be.

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Rick Ellis

Hi Jean-Claude,

It's really a wonderful thing that you are doing. I am not really well versed with this issue of Micro-finance and lending. But i believe you should not only be based on one anticipated source for fund-raising. You have to look at other activities that you can begin doing to help raise fund locally or even internationally. I mean you have to focus on Organizations and other partners that can help as well. You can also Organize the women and the youth in group and offer them some capital to start off Income Generating Activities like poultry, piggery and farming. This will in the short run raise for you some money. When you get the money from such activities; you deduct the Net profit and again re-invest the capital. The profits realize can now be used for funding other activities and projects that the Organization plans.

As well, you can also carry out online fund-raising from well wishers upon defining the need of your project(s). I have some example of sites that you may contact and register with to see if it can work for you.

Try Give Meaning, Global Giving, Just Giving and First Giving.

I wish you try those above as well beside what you are currently doing. I will get back to you with list of Donor Organizations.

Regards,

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Ojok Eric
National Focal Point-Uganda
Global Youth Coalition on HIV/AIDS
P.O.Box 1464,Jinja Nawanyago
ojokeric@gmail.com
www.iAIDS.org | www.youthaidscoalition.org

Hi Eric,

thanks for the reply. I agree with you - it would be great to get the community involved in income raising activities like poultry, swine, etc. Eventually this will happen in Buterere and it will be great!

Just to let you know, and anyone else who reads this, our project is listed at Give Meaning. The link is http://www.givemeaning.com/project/buterere
I think it is best to keep it to one fundraising site so as not to create any confusion.

Thanks again for your feedback. We are glad to have you in Buterere Village on Nabuur!

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Anna Soper

Hello
Eric's ideas seem sound enough, except there is still the blurring of the distinction between lenders and borrowers. 'The borrowers will raise money for the lenders to lend to the borrowers'? I don't understand who is the "you" who will get the money, keep the profits and reinvest the rest. There is only one rule with money. Every Dollar has to be earmarked and accounted for; otherwise everybody will think it is their's. Meanwhile, THERE IS NO MONEY. There is no chicken and there is no egg; so which came first isn't really an issue. First things first.

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Rick Ellis

Dear all
This is a very good example.
Thanks

Starting your own Micro-Savings Program or make use of one like KIVA http://www.kiva.org ? Sorry, I am late into the game here but that is my question. Why not become self-supporting and decline outside contributions - then each member putting into Micro-Fund has like shares and gets interest in or out of the Program. Its a weak outline but that is my contribution - instead of always looking for a handout from others - pool your resources and become accountable ...

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Jennie

Hello everyone,

Jean-Claude (the LR) has started an initiative on 2011 WePitchit! Challenge and we are seeking your support for "JEKALAINTA". All we ask is that you take 30 seconds to click on the link, and cast your positive vote. If you have another 30 seconds, you could write a comment to support the project! We need about 600 votes, so please help! This is probably the easiest task that will greatly help ASSASS-Burundi

Go To:
http://we.ideascale.com/a/dtd/JEKALAINTA--Emerge-Mobile--Giving-Applicat...

Thanks so much everyone!!!
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Anna Soper