Economic Empowerment

Guided by the principle that teaching individuals how to fish empowers them for a lifetime, STEP embarked on a transformative journey in 2014. The organization introduced an interest-free microfinance program aimed at uplifting impoverished communities by facilitating the establishment and expansion of small businesses. This visionary endeavor sought to provide tangible opportunities for self-sufficiency and sustainable growth.

The loan process was quick and simple, and it included all important elements to mitigate the risk of default. Borrowers fill out an application form on paper, followed by a field visit from a local volunteer. This assessment encompassed the viability of the business proposal, the applicant’s aptitude for managing the envisioned venture, and the ability to repay the principal sum punctually. As an added measure, applicants seeking loans surpassing $100 were required to furnish collateral in the form of a bank cheque. Alternatively, those seeking smaller amounts provided a social guarantee, often in the form of 1-2 individuals who could vouch for their credibility.

Within our microfinance program, loans span a range from $35 to $1,071, with an average disbursement of approximately $180. The repayment period spans 10 months, extendable by 2-3 months if circumstances warrant. Remarkably, this initiative was inaugurated with a modest capital of just $540. Since its inception, we’ve orchestrated remarkable growth, expanding our funds by over 37 times. To date, our disbursed micro loans total $21,000, with an impressive loan recovery rate exceeding 95%.

Notably distinct from the group-focused approach of institutions like the Grameen Bank, our microfinance model centers on the individual. This strategic decision empowers us to effectively cater to an underserved population segment, rendering our services a unique and indispensable asset to those we serve.