Luja's first loan

Last Updated on Sunday, 01 November 2009 16:21 Written by Daniel Sunday, 01 November 2009 13:58

 Luja is a member of our group „Mwabasabi chini“, one of 5 groups in Bunegezi.

Her group are 7 women which meet every Saturday afternoon, together they have started a little Garden. Currently they plant Tomatoes, Eggplant and Kale before they already had beans and Carrots. So far the garden is not giving them profit, that is because the Rainy Season has hardly started and they are just starting to plant.

They save a small weekly amount of 500 Tanzanian Schillings, which is about $0,35 which helped to get the garden started, buy seeds and Fertilizer. The amount seems to be small, but it is actually already challenging enough for them to get this money every week. The idea to actually save money seems unfamiliar to them, most of them hardly get the money together every day for the needs of the day, there is no employment for anyone in that village. This works somehow for them, as long as there is no problem such as a sickness. Then they need to find a way to get the needed money, usually the family or neighbours will help, but most of them are in no better position themselves.

The little amount the group has helps them to give loans to each other on terms which they set themselves before. Most of the time it is a interest of 10% per month, which makes it easy to calculate. That interest if very low, most Banks officially ask for 35%!

They need mainly only small loans usually not more then $15, such a loan they could never get from any bank which is anyway far away in the City.  

Yesterday Luja did receive as the first member of the Group a loan of 5000Tsh ($4), this is not the first group to give loans, but it was a “hard” start for the group and so a special moment for all of us. Which had to be celebrated by taking a picture.