Transformative Praxis: Microloan
What is a microloan?
A specific small loan amount that an individual borrows from a microfinance institution. Depending on the country, the amount of a microloan can vary. However, it is generally tied to a country’s average income levels and international development poverty metrics. Typically, the poorer the country, the lower the threshold of what would be considered a microloan.
Why Did We Start a Microloan Program?
Transformative Praxis and its not-for-profit partner, Transformative Praxis Malawi, are looking for ways to foster and assure long term sustainability in our collective efforts to provide Health, Education and Development to the rural community in Chilanga.
We have come to understand that lending rates in the Kasungu area are at 50%. At the rate of 50%, there is limited possibility of repaying a loan and will certainly just keep people in a circle of interest payment and increased debt. Therefore, a more just lending rate is needed.
We have come to understand that lending rates in the Kasungu area are at 50%. At the rate of 50%, there is limited possibility of repaying a loan and will certainly just keep people in a circle of interest payment and increased debt. Therefore, a more just lending rate is needed.
Who is the microloan for?
Currently, this microloan is exclusively available to employed, certified teachers who are in good moral and financial standing. They must be working at one of the schools near the TP Campus.
what is the lending rate?
After careful consideration, we have decided to set the lending rate at 20%, because we believe with clarity of payment schedules, a borrower can organize their finances properly and repay a loan at this amount.
How much money can be borrowed?
The amount is based on several factors, including:
- Amount available in the TP Microloan fund.
- The purpose of the loan
- The borrower’s assets
- The borrower’s ability to pay have the loan and interest
What Happens with The Interest That TP Makes?
Admin Expenses: This is to pay for the various costs of running the TP Office, including Airtel, Fuel for Vehicles, Paper, etc.
Campus Upkeep: As the Campus grows, we recognize preventative care is essential to maintain our assets.
Increase Lending Power: Putting money back into the amount we currently possess to lend, allows for growth in such areas of pay increases for workers and new hires.
TP Member Share: On a quarterly basis, TP workers will use this money to assist with their needs. This can be in the form of developing a health fund, or even a food program.
Campus Upkeep: As the Campus grows, we recognize preventative care is essential to maintain our assets.
Increase Lending Power: Putting money back into the amount we currently possess to lend, allows for growth in such areas of pay increases for workers and new hires.
TP Member Share: On a quarterly basis, TP workers will use this money to assist with their needs. This can be in the form of developing a health fund, or even a food program.
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Soil remediation
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We're thrilled to announce that TPM member Sophie McCafferty has been accepted to receive the Pathy Foundation Fellowship grant!
The Pathy Foundation Fellowship is an intensive 12-month experiential learning opportunity for applicants to lead a self-directed community-focused project in a community they have a meaningful connection with, anywhere in the world. Sophie's project, Integrated Livestock Agroecological Soil Remediation in Malawi, aims to explore the potential of community-driven sustainable agriculture. By empowering women, girls, and people with disabilities to experiment with integrated livestock management techniques, we can initiate long-term soil remediation to reverse the local ecosystem’s nutrient depletion from over-exploitation caused by colonization. |
We look forward to updating this page as the project moves forward!
