Small loans make a big difference

-Article by Rotary International News

Sometimes dubbed the “Forgotten Avenue of Service”, vocational service can be difficult for clubs to understand and implement.

This woman used her small loan to build a kiosk where she sells biscuits and cakes.Photo courtesy Rotary Club of Alexandria Sporting.

The Rotary Club of Alexandria Sporting, Egypt, rose to the challenge by focusing on micro credit loans, literacy classes, and a sewing workshop to meet the needs of low income community members, helping owmen in particular to start businesses and learn useful work skills.
“We gave loans to deprived women supporting large families, says past club president Heba Kabel. Clubs made 20 loans of about $85 each to female entrepreneurs to launch small food or cleaning businesses. The loans were paid back in installments over the course of a year, and the money was then loaned out again – turning the club’s initial investment of about $1,700 into a sustainable micro credit program.
The club also financed literacy classes, helping 75 women learn to read and write, and a sewing lab, which drew 45 woman to sewing lessons every month.
Kabel notes that the club put a priority on efforts that would help community members increase their chances of finding a job. “We made a big bazaar at the end of the year and sold their products,” Kabel says, explaining that the proceeds went to the women.
Kable, a Barclays Bank employee, also tapped into her own vocational skills by offering free lessons in financial literacy to several women whom club members had met through the vocational service initiatives. The financial advice helped the women make informed decisions about their new incomes, teaching them to allocate some for savings and giving them a better chance of sustaining their small businesses.
To learn more about micro lending through Rotary International, check out the Facts of the Matter on the web.