Women's Microfinance Program (WMP)

Women's Microfinance Program (WMP) is sponsored by Resilient Villages Uganda (REVU). WMP is a village-level microfinance program that offers loans and business training on 'Start and Improve Your Business' (SIYB) to rural women in Uganda, in order to start income-generating businesses.

Women’s Microfinance Program | Resilient Villages Uganda (REVU) Women’s Microfinance Program “Encourage women and girls to earn a living and they’ll INVEST 90% OF THEIR INCOME BACK INTO THEIR FAMILIES. More than twice as much as men” WORLD BANK In Uganda, many women are held back from engaging in economic life.

They are less likely to get an education, and many women are married at a young age to relieve the financial burden on their parents. Cultural norms and legal structures, such as inheritance and land ownership rights, reinforce inequality and hamper women’s economic empowerment. We believe that when women and girls are able to learn, earn and save; they become agents of change in their communities and nations at large.

Empowering women has positive repercussions for everyone in the community. Research shows that women are much more altruistic with their incomes. According to World Bank, women reinvest 90% of every dollar that they earn back into their families’ education, health and nutrition.

This means that by supporting women, we improve access to nutritious food, healthcare and education for children and dependants too. What’s more, women are more likely to repay their loans. There is a wealth of research to prove this.

When loans are repaid to REVU Micro-Loan Program, they can be used again and again to support more women to feed their families. This means that by supporting women, our reach is wider, and our impact is greater. WMP is a village level microfinance program that offers loans and business training on ‘Start and Improve Your Business’ (SIYB) to rural women in Uganda, in order to start income generating businesses.

REVU provides a comprehensive loan program called the “Women’s Microfinance Program” (WMP) that offers impoverished, rural women four consecutive interest-bearing, six-month term business loans (collateral free), ranging from $100 to $250, in a highly structured environment.

Borrowers in a 12 member solidarity group cross-guarantee each other’s loans; they take part in 6 months business training on ‘Start and Improve Your Business’ (SIYB) and gain business skills, peer mentoring, technical support, on-site follow-up mentoring and support with business coaches along with on-going access to resources.

REVU-WMP works with each borrower to prepare a business plan which provides a basic roadmap for the borrower to reach her economic goal. Simple marketing, business operations and management concepts are taught. Group activities allow the women to practise promotion techniques for their businesses.

REVU-WMP provides notebooks, pencils, and calculators to enable the women to keep track of their business finances. REVU-WMP maintains close contact with its borrowers through local mentors and loan hub coordinators who visit all of the borrowers on a rotating basis, assisting them with book-keeping and solving business problems.

A full loan hub consists of 5 solidarity groups, run by the loan hub coordinator who collects payments and reports on the women’s progress. With 5 groups, a loan hub becomes self-sustaining as loan income is sufficient enough to support all loan hub program operations. After 24 months, borrowers graduate from the REVU-WMP regular loan program to REVU-WMP basic loan program.

These entrepreneurs have developed a payment track, marketing skills, and record-keeping abilities; most businesses are successful enough to become self-financing. Borrowers open bank accounts and become financially independent. Entrepreneurs who wish to continue to expand operations and who need larger loans to meet credit and cash-flow needs can apply for REVU-WMP ‘Pamoja Loans’ up to $550 (Alumni Loan Program).

The funds repaid to REVU-WMP by graduating borrowers are then re-utilised to provide loans to first-time borrowers entering the program. By providing access to collateral-free loans, training, and education through peer groups, impoverished, rural women experience the immediate benefits of launching micro enterprises – increasing their skills, and improving their ability to access traditional finance successfully.

The larger community improves exponentially as these women increase economic opportunities for their households, increase local development through employment, and create community wealth. The program utilizes mobile money technology to facilitate easy access to financial services by solidarity group members. ● Loan amounts of $100 – $250.

● No collateral required – borrowers cross guarantee each other’s loans and solidarity groups use social capital as collateral to foster loan repayment. ● 10% flat interest rate for the loan term. ● Successful borrowers are eligible for follow-up loans.

● Loan groups of 12 borrowers. ● Weekly support group meetings. ● Training, technical assistance and follow-up support.

● Local mentors and loan hub coordinators visit borrowers on a regular basis. ● Regular reports provided to REVU-WMP. ● Semi-annual surveys to document program impact.

Innovative Loan Program Structure ● REVU-WMP teaches rural women to manage local loan hubs vesting ownership to the community from day one. ● Women are organised into 12 member solidarity groups where members cross-guarantee each other’s loans. ● REVU-WMP provides loan amounts of $100 – $250 at a 10% interest rate over a six-month term.

● Interest is paid to the local loan hub and covers all local loan hub program operating expenses. Income after loan hub expenses is used for community demand driven development projects the women select themselves. Projects such as reconstruction of village water systems, provision of scholastic materials to support orphans and vulnerable children attending school, among others.

● After four loan cycles, women graduate to financial independence and they open bank accounts. ● Their businesses become self-financing; they can also apply for REVU-WMP ‘Pamoja Loan’ to expand their operations. ● Repaid loan amounts are reinvested by the local loan hub to fund first-time loans for new borrowers.

● Loan hubs become self-sustaining after 36 months and continue to issue thousands of loans each year. If you are passionate about community development, and making a difference in the lives of the impoverished women and girls . Resilient Villages Uganda (REVU) is a grassroots non-profit charitable community-based organisation that promotes empowerment of impoverished women and girls for sustainable change.

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