050308_microloan

tajikistanweb.com

050308 - A website that connects lenders worldwide to unique entrepreneurs in the developing world has been encouraging the lenders to support Tajik citizens to set up their own businesses. 13 Tajik nationals have applied for business development loans via Kiva website.

All of them have approached MLF Microinvest in Northern Tajikistan for support. Microloan Fund MicroInvest is a non-bank financial institution that tries to strengthen the economic base of the low-income households in Tajikistan through increased access to credit services for entrepreneurial activities in urban and surrounding areas. Its largest funder is USAID but a large part of its loans come via dedicated charity websites like Kiva.

Each applicant beside his/her photo has a full description that explains the purpose of the loan application. "Abduaziz Jabborov works in the Department of water canals", reads one of them, " but he can not feed his family with the salary he makes. Besides, last year he married his son. Since childhood, Abduaziz took care of cattle; now this became one of the main sources of income for him. An experienced cattle specialist, he buys cheap cattle in spring and then sells it at the market in a few months… Now is the season to buy cattle. If Abduaziz has an opportunity to receive a loan from MicroInvest, he will buy several calves."

These words were enough to provide Abduaziz with around 90% of the needed amount: $450.

But there are some other people among Tajik loan-seekers who are just financially stuck and need a little loan to cope with their problems. Like Nasri Masaidova, a school teacher with 3 children whose oldest son wishes to marry his beloved. But his future mother-in-law is insisting on a quite expensive dowry for her daughter. Masaidova is short for $600 and so far has received just 20% of the much needed loan.

Each of the applicants has agreed upon a certain repayment term that varies from 6 to 12 months. Their lives could be dramatically changed at the click of a mouse by a lender. Loans could be as little as $25 or as big as the whole of the amount.

Registan.net is a website that has been promoting Kiva systematically. " If I were to lend Nurullo Otaev , $50 to invest in his shoe business, and I lost that," supposes the website in one of its Kiva stories, "then I could just consider myself to have donated that $50. If, on the other hand, it is paid back and I then reinvest that money in Mr. Otaev’s neighbor’s business, then I am playing a small part in lifting the entire village of Chkalovsk out of poverty. It is like running your own foundation—an appeal to vanity, to be sure, but an undeniably effective one."

But the former scenario almost never occurs and to date not a single business has defaulted. The scheme works efficiently. According to Kiva’s late Tuesday data, 1785 entrepreneurs have lent $742 525 and 428 loans have been completely repaid in last seven days.

The conditions to take part in this charitable race of humanity are explained by Kiva.org:

"By choosing a loan on Kiva, you can "sponsor a business" and help the world's working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the entrepreneur you've sponsored. As loans are repaid, you get your loan money back."