Thursday, May 29, 2008

Is this the start of Micro-lending at TDP?

Micro-credit has been seen to be an extremely strong tool in improving the living conditions of the poor throughout the world. With Bangladesh being the home of micro-credit it seems only appropriate that we here at The Dhaka Project try to see if we can help our families make a difference through these micro-credit loans.

Whilst it has been an idea of mine for a while to establish such a process, it took a student of ours, Rubel Rahman in Std 6, to come to me yesterday and ask if it was possible for us to give his father a loan to help him establish a tea shop near their house.

So Rubel and his father approached us for 10,000 taka, we agreed that we will first give half to him (5000tk) and once he has paid back the majority of that principle we will offer him another loan if he requires one.

We will not be handing out this cash, rather we will be charging interest of 1% per month (close to the current Bangladesh cost of 13% per year). Encouraging our future borrowers to pay back these loans as soon as they can.

May this be the first of many life changing loans for The Dhaka Project Family.
Rubel's Father, Rubel and Richard allocate what hopes to be the first of many life changing micro-credit loans to parents of The Dhaka Project.

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