What is a micro-credit?

Philosophy

The micro-credit supports projects in which creativity can be maximized. The loan is negotiated with total transparence in order to eliminate the danger of corruption and competition. The concept is based on trust in the clients. For obtaining protection by the jurisdiction, the Association has required its local integration in form of a NGO (Non Governmental Organization) at the respective ministry.

Principles of the system

The micro-credit is a loan to be reimbursed, granted to:

• a group of independent people who have the same aspirations and the same economic and social status
• individuals only, supported by a group or by a person, not part of his family (principal responsibility)

Each borrower is responsible for his own loan.

Key points of the strategic approach

The focal point of the concept lies in its originality. But from a practical point of view, it is appropriate to consider several elements:

• The impact concerning the population (potential number of clients, equivalent models nearby, which are already functional)
• The coherence of the team (relatives, friends, concurrence…)
• The strategies of constructing infrastructure (existent buildings, plots of land, situation…)
• The base for calculation of the potential activity (clients known already, points of sale…)
• The solutions in case of disease (of the leader, the collaborators, the livestock, the plants…)
• The follow-up methods by the Association GRAFE (control visits by the local responsible person, urgent mail)
• The consequences of non-payment (blame, warning, fine…)
• The choice of the personal book-keeping model for the borrower

All these elements are to be considered when the projects are accepted by the Association.