Our Model

There are many non-governmental organizations (NGO’s) in Malawi and Zambia. The MicroLoan Foundation is different in numerous ways because of how we do our work.

MLF’s community-based model delivers services through our branch offices and locally-employed staff. We initiate conversations with traditional authorities in each region and work collaboratively with other development organizations to communicate our mission.

We provide loans to groups of 12-20 women. Each woman has an individual loan but there is a group responsibility for repayment. Each group has its business ideas appraised and receives eight training sessions covering topics such as bookkeeping and cash flow. All group members are required to save money as a source of security. Each woman receives her loan as a check and opens an account at a designated bank.

Individuals in the group then establish small commercial ventures. Groups meet with a loan officer every two weeks to review their progress. Repayments against loans are made bi-weekly or monthly by each group member.

Loans typically last for four months. Loans are small – on average $80 per individual. Interest is charged in keeping with the local economy. Should an individual want to develop a business further they may receive a bridging loan of, $250-$550 or access our specialist training MicroVentures service.

When the women repay their microloans, we give it to another woman….when she repays it we give to another….and so on…the loan capital keeps on helping women in Africa over and over again.