Small Business Loans
Muravah Foundation has taken an unusual approach to small business loans within the community and we use the following criteria to select appropriate candidates:
- The loan is interest free and we will consider any amount.
- We will only invest in businesses that are sustainable and will take the recipients of the loan out of poverty (natural disasters can, and will, create exceptions - the Philippines is visited by an average of 20 typhoons per year).
- We must together work out a proposal which includes detailed capital costs, monthly overheads, estimated gross sales and cost of goods.This information is prepared by Muravah Foundation as a cash flow and profit and loss.
- The business must allow the recipient to earn enough money to open a bank account and save for the future.
- The ideal time allowed to repay the loan is two to three years and the cash flow must indicate the recipient’s ability to do so. If the recipients do not have the knowledge or expertise to manage the business, we will conduct training, or appoint a mentor.
- Monthly checks on the cash flow of the businesses are carried out by Muravah Foundation.
- When the loan recipient has paid back the loan and if cashflow allows it, they will take on full responsibility for their children sponsored by us. Muravah Foundation will replace these children with new sponsorships.
- It is agreed at the signing of the contract for the loan that a percentage of profit (it varies between 10-25%) will be paid back to Muravah Foundation on a quarterly basis. This allows and encourages successful beneficiaries of Muravah Foundation to give back to their community and neighboring communities through Muravah Foundation.
Copyright © muravah foundation 2013. All Rights Reserved.