Mercy Foundation Funds Microloan
Microfinance Services Assist KanwalThe bustling city of Rawalpindi in the Punjab region of Pakistan is home to Kanwal Shehzadi, a tailor’s wife. As the sole breadwinner, Kanwal’s husband is responsible for ensuring that his wife and four children have everything they need. He does this through his tailoring shop, a business that he has owned and operated for the last 11 years. Kanwal’s husband recently went through some financial difficulty, and was not able to buy accessories for his business. The accessories he needed were items such as cloth, laces, needles and sewing machine parts. To help her husband, Kanwal Shehzadi approached BRAC Pakistan for microfinance services via a loan. She is a regular borrower from the organization, and she has a very good history with the organization. Therefore, the loan would help her husband buy all his supplies, which would enable him to be more profitable.
Microfinance Services Partners with Mercy FoundationKanwal’s loan was locally administered by BRAC Pakistan. BRAC Pakistan, a local Kiva partner, whose main aim is to provide credit to entrepreneurs who are looking to expand their small businesses. Many of the people who are assisted by BRAC Pakistan do not have access to loans because their requests are too large for standard microfinance organizations to handle. Many of them also lack the necessary collateral to borrow from commercial banks. The organization also provides health and education services to its members. With the help of BRAC Pakistan and Kiva, a $500 loan was funded for Kanwal Shehzadi. Organizations like BRAC Pakistan and Kiva, along with giving entrepreneurs are helping low income earners to escape the poverty that surrounds them by providing them with loans. One reason microfinance services works is because we have the same goal, to provide microfinance services to those that need them the most. The method of operation is simple, Kiva approaches micro financiers such as myself who provide the loans. BRAC Pakistan then identifies individuals who are in need of the funds and distributes them accordingly. The loan provided for Kanwal has enabled her to help her husband buy his accessories, and has put them on the right path to financial success. If you would like to change someone’s life in the same way, you should visit www.Kiva.org. Their website has a long list of underprivileged entrepreneurs who have requested loans that are in urgent need of funding. Notes
- This article is based on https://www.kiva.org/lend/841877