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The majority of people in the rural areas in Malawi do not have jobs, and thus they struggle to feed themselves and their families. The aim of CHARM is to assist these families to gain a sustainable source of income. The majority of people who come for a loan from CHARM are women. The loans are given out to groups of 10 people. The groups appoint themselves a president, secretary and a treasurer, and that group is responsible for managing the loan. Each group is given 20,000 kwachas, or £100. It is then divided between each group member.
Before they are issued their loan, our development worker – Mr Kalulu – trains them in basic business skills. He will then assist them through the duration of the loan and beyond, to help them make their businesses successful.
The loans are usually paid back over 6 months and they will pay an interest rate of 10%. The groups work together to pay back the money and support each other. If one person cannot make their loan repayment, the other members of the group will support and help them.
When the money is paid back, it goes straight back out as another loan. As the interest builds up, it adds more and more money to the pot, generating even more loans.
Groups may apply for more money at a later stage if they wish to expand their businesses even further.
Their businesses are very simple and usually involve buying basic commodities such as tomatoes or fish and selling them on at market.
The people that we are currently targeting are the families who support at least one orphan in addition to their own children. |
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