Using part of the tour revenue as the funding initiative, we are lending microloans as start-up capital to female entrepreneurs. The following chart describes our procedure.
In details, the lending procedure includes 6 steps
1- Borrower assessment and appraisal
Field staff of Bloom Microventures work closely with the Women’s Union. The Women’s Union is our local partner who introduces us to female villagers that are interested in getting a loan and takes loan applications from the women members. Potential borrowers pre-screened by the local Women’s Union will be handed out to Bloom Microventures for assesment. Our field staff will carry out the initial assessment and develop potential client profiles. The borrowers are appraised based on the feasibility of the business plan proposed.
Bloom Microventures field staff will also assist the borrowers in basic accounting, business plan and financial management to assure a profitable outcome of the business
2- Loan funding
Once the loan application is appraised, a tour will run to fund a microloan as start-up capital for the business. On the tour, the guests will have chance to visit the woman borrower who is appraised to receive a loan funded directly from their tour fee.
3- Loan disbursement
After the tour, field staff of Bloom Microventures will disburse loan capital on the 15th and last day of every month.
After disbursement, our loan officer visits the borrowers on a monthly basis to keep track of how they are doing with the investments and provide assistance when there is a need. Updates abut each borrower will be shared with the tour guests whose tour fee contributes to make the loan.
5- Interest payment
Interest of 0.5 % per month will be collected monthly by Women’s Union staff at the village level and handed over to Women’s Union staff at the commune level during the monthly meeting at the beginning of every month.
A portion of interest payment will be used to pay compensation for Women’s Union for introducing new clients and collecting monthly interest.
Loan principal can be returned in full after 12 months or 50% every 6 months depending on specific investments. When returned, loan capital goes back to the revolving fund to fund other loans.