First and Last Name: Sherine Fernando
During my bank days I was burdened with the injustice the poor faced simply because they could not prove their credit worthiness. Many were deprived of financial help despite the great potential they had to succeed in their humble business ventures.Even if they were approved extremely high interest rates were charged to cover anticipated risks; this happens in the microfinance sector too because they cover the risk for default loans by charging very high interest rates from the good payers. Banks don't do that. Injustice only for the poor. After much research/brain storming I found a solution.
Its an affordable finance product called ‘Micro Forwards’ (MFs) which the poor can make use of for their humble business start ups, expansions or vocational training costs leading to guaranteed employment Purpose -is to help the deprived poor become self reliant, provide for their families, and also enable them to give forward to help other deserving people in their own communities Features -Receivers become Givers themselves by giving in 24 mthly installments the principal amount received. Such ‘give backs’ are pooled to fund new MFs to be given forward to others in their same communities. Recipients also got to put the MF to best use and make a reasonable profit.They are also expected to remain as Givers of whatever tiny amount possible even after they give back the full principal
The project is a revolutionary one expected to make a huge impact and it is already recognized by the deserving poor as an affordable financing tool which they can accept without any fear of defaulting. Whoever we have contacted so far to have cell partnerships all like this concept as according to them there are so many financially handicapped people unable to borrow because of the extremely high interest rates quoted to them locally. Most poor people want to build their own communities as it is in their long term interest to have better living conditions. I am so confident that this program will catch up and spread faster across the world like no other had done before.
There is a powerful forward moving action in this system of giving because every dollar given is returned and given forward. The continuity is possible because the receivers themselves become givers by giving forward from their productivity. Further, the benefits to their community through this continuous giving action is well explained to them, and it is only on their agreement to be actively involved in this program qualifies them to be recipients of micro forwards. They are also strongly encouraged and motivated to continue giving just a $1.00 or $2.00 even after they fully finish giving back the micro forward amount they received There is continuation for every seed nothing is wasted
The ever increasing number of success stories is a good measurement of success. We will be keeping statistics of the following numbers for our own records and for donor information which are all success measuring scenarios 1. Number of countries reached 2. Number of cells formed in each country 3. Number of families who benefited and became self reliant 4. Number of new jobs created 5. Number of children of the families who succeeded 6. The percentage of successful give backs (the success rate versus defaults) – currently we have a 100% success rate, we strive not exceed the default rate above 2% when our exposure is at very high levels even. 7. Country-wise numbers of all the above
$50,000 will help us to fund 100 to 150 micro forwards. Our micro forward requests usually range from $250 - $500 per each application. We were receiving around 15 applications per week and we had to request our cells to slow down because we did not like the applicants to wait expectantly for their money when we were finding it difficult to fund all at such a fast rate especially because we had started this organization not very long ago. Within a few months of operation, we have made great success, and we would have continued at a faster rate if we had more funding in place. Therefore $50,000 will be a great blessing that we can put into best use as we have many pending applications
Monday, April 22
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at 12:00 PM PDT
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at 12:00 PM PDT
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