Micro-Lending: 
Masomboly

Established in 2007 and running through 2015, Masomboly provided small-scale loans to women entrepreneurs in Ambalavao, Madagascar. Ambalavao is a town of 30,000 people located in the highlands of Madagascar.

Masomboly means "seed" in Malagasy. Project Masomboly provided credit to women who otherwise lack collateral and access to loans through the formal banking sector. Since for-profit financial institutions view these women as high-risk borrowers, women often resort to local moneylenders who charge exorbitant interest rates.

Pioneered in Bangladesh by Nobel Laureate Muhammad Yunus, micro-lending to the poor at little to no interest rates has been proven to work: loan repayment rates average over 90% because the poor value this opportunity to gain access to credit.

Project Masomboly provided 50,000 Ariary (about $30) loans to first-time borrowers who completed a simple business proposal drafted with the assistance of local OSI staff. If the loan plus a 10% interest rate is repaid within a six month period, the borrower then had the opportunity to take out a 100,000 Ariary loan. For example, a loan of 50,000 Ariary is repaid at 55,000 Ariary. In addition, if the woman made all of her repayments on schedule, we reimbursed her the cost of the interest. Every time the borrower pays back her loan, she gained access to another loan of a higher value.

Project Masomboly provided loans for hundreds of women and engaged a group of dedicated funders. Projects like these demonstrate what even a small donation can do to improe the lives of others.  

ARE YOU IN?

Donating is simple. All donations are tax-deductible.   
Just click Here