Since beginning the Micro Enterprise program in 2000, HopeCore has provided loans to 71 groups, consisting of 749 households or 2,247 individuals. Among these groups 75% of members are women, 10% are HIV/AIDS positive and the average number of dependents in each household is 3.
Data collection on impact of microloans began in 2006. Eight (8) groups have since completed their two year loan repayment process. From these eight groups or 90 households, the following have been realized:
- 35% reduction in poverty
- Average monthly income after loan repayment increased to $117.46 from $38.88 prior to receiving the loan was $38.88
- 92% of household live above the poverty line after the loan cycle, compared to 57% prior to the loan ($1.50/day)
There are so many Success Stories from HopeCore’s Micro Enterprise Program. Explore inspirations stories of some of our loan participants.
How Micro Loans Work
HopeCore’s microlending program is divided into the 6 steps listed below. We always have groups waiting to receive Normal Loans who are going through the Merry-Go-Round and Soft-Loan processes. Groups are able to receive normal loans only when funds are made available through donations from our generous donors.
- Group Formation: 12 motivated and dedicated individuals form group
- Merry-Go-Round: Each member of the group contributes a small amount of personal funds monthly.
- “Soft Loan” Distribution: The group receives a 30,000 Kenya Shilling (approximately $300) loan to be repaid over 6 months at the 4.5% interest rate.
- Distribution of “Normal Loans”: Once the group successfully repays their “soft loan”, they become eligible to receive “normal loans” or 30,000 Kenya Shillings (approximately $300) per member. These loans are repaid over 24 months at 9% interest.
- Insuring Full Repayment. All members of the group pledge to pay the loans of all members of the group.
- Support and Sustainability: The group collects payments, provides business advice, maintains accountability, lends support and keeps financial records.
For more details on these steps, visit our How Micro Loans Work page.