The micro loan project in Busia operates in three separate sections with three different groups of people. In what they call the ‘smaller loans’ scheme there are around 50 people. There were more than this originally, but it was felt that this was the ideal number. The loan repayment profile in this scheme has been excellent with no defaults although there is a measure of delayed payment. The small loan scheme would normally provide loans of under $100.
The second scheme which is specifically focused on members of the HIV/AIDS support group. There are 95 people in this group, not all of whom are in the programme. This scheme is run on the table loan principle where the loans are small. The large loan scheme embraces a relatively small number of people and provides loans between $450-900. Entry to the scheme requires savings by the member of at least one third of the loan they request. This scheme enables young men, in particular, to purchase motorcycles that are used as taxis and can generate significant sums of money to support a family.
