WHO WE SERVE

Our mission with the VEG-Microfinance Institute (VEG-MFI) is to give local women access to the markets in the Volta region.  We believe that when women have more control over their finances, it will then help them to become empowered in other aspects of their lives.

As of September 2009, VEG-MFI has reached 226 individuals in 7 different communities.  We have dispersed 306 loans to 44 groups and 29 Small to Medium Enterprises (SME).  The total amount of loans dispersed to date is 68,300 GH¢.

HOW WE OPERATE

Increasing access to credit facilities is in our view an essential component to any women’s empowerment program. These services need to be client oriented, and include well defined and holistic non financial services as well as monitoring and evaluation tools.

At VEG, we aim to build close relationships with clients, supporting them in all aspects of their lives, by implementing partner programs in Reproductive Health, Literacy, Business Development, etc.  Part of building this relationship involves offering back to back loans of increasing amounts. This both reduces our risk as unreliable clients are weeded out for larger loan amounts, as well as allows the growth of the business to follow a natural progression, the sustainability of the client growing with each new loan.

VEG offers two types of loans to women and/or to groups of women:  IGA (Income Generating Activity) loans and SME (Small to Medium Entreprise) loans. The structures and conditions of both these loan types have been designed to conform to VEG’s above stated philosophy, and address the need for differentiated financial services targeting women in the Volta Region today.

IGA Loans

The IGA loans will follow a group-based lending format.  IGA clients are often involved in petty trading of commodities. Within smaller rural communities, loans will be offered to individuals who have formed groups of between 5 to 10 potential loan beneficiaries. Each successful loan applicant will be allowed to receive a loan of 4 times their total savings, which will be deposited as loan collateral. Business skills training and other non financial services will be integrated into the loan package and will cover savings mechanisms, book-keeping, marketing and general business skills development. Initial IGA loans range from 50GH¢ to 150GH¢ (approx. $50-$150). Loan recipients will be eligible for loans of up to 400GH¢ ($400) subsequent to repayment of earlier loans.

SME Loans

The SME loans will be offered to individuals operating existing businesses that are often more complex than IGA operations (e.g. have employees). SME loan recipients must also save one quarter of the requested loan amount for loan collateral; however, SME loan beneficiaries do not have to participate in business skills training, but require a garantor be assigned before the loan is disbursed. SMEs are eligible for first loans of between 500GH¢ to 1000GH¢ ($500 – $1000), and subsequent loans of up to 2000GH¢ ($2000).