Revolving Fund Program
The Revolving Fund Program as been in place for 20 years within 27 different villages (in 5 provinces), with 30 participating groups (some of the big villages have 2 groups), and 453 families (members)…and has never had a default! The objective for the loans is to help families gain access for sustainability without exploitation.
With these loans they do not have to borrow from seed / agricultural companies and loan sharks (30%) at high interest rates (20 – 30%). When this happens, they often do not make enough money to survive on as part of working with exploitive, high interest rates companies is that they are forced to sell to these companies at lower prices than they would otherwise. On top of having to pay back the interest, they are kept in a cycle of debt and poverty rather than being given the opportunity to expand or grow their crops.
How it works…
Members are given loans related to agriculture. The loans are used to purchase:
a. Seeds (examples:corn, soybeans, kidney beans, black beans)
b. Fertilizers for above crops and fruit trees
c. Expanding their crop, propagation, nurseries
d. Some use it to start a new crop (new market) they haven’t done yet
e. Women’s program: used for materials to produce the products they are making
Maximum amount that members borrow: $500
Minimum amount borrowed: $200
Members pay back the loan when they are able to. To date, not a single member has had a default in payment in over 20 years!
Testimony of a Beneficiary
My name is Jader Khamsaen and my wife, Lutha Jaja. We have 6
children; 5 sons and 1 daughter. I’m a chairman of a church. I’m very
appreciated that Integrated Tribal Development Foundation support
revolving fund to my family. We have invested the fund to grow
cassava, soybean and corn.
My family has more income to support for
the family expenses; school fee for children’s higher education, food for
children to go to school, medicine, materials for agricultural(hoe, knife, spade) and clothes for children.
Thank you very much for the project that
make my family has better quality of life.