Human life depends upon ECONOMICS and especially in the Third World countries a person who is economically strong has a high status in the society.  Although the development does not depend only on economic aspect, but it is a major part of it.

Caritas Pakistan promotes the Total Human Development in the societies.  We are working for the same at grass root level.  These people have lot of problems but their key problem is economics due to several reasons.  Caritas started this program to raise the economic condition of the poor people, through this we are providing loan facilities to people for business purpose to make them self-reliant.

To provide the opportunities of small business for poor people to become self-reliant.  

	to promote weak businesses
	to establish new businesses

First of all, we select an area with the consent of area animator and clients are selected according to our selection criteria.  Credit group is formed after four regular meetings, in the meanwhile legal documentation is also completed.  After this process, loan disbursement ceremony is arranged to give loan to the selected clients.  We conduct regular monitoring to ensure the better utilization of given loan and assist for their business.  We collect the monthly recovery within stipulated dates.

AREA SELECTION

Our first task is to select an appropriate area to form a credit group.  We visit areas of different animators, where we find strong CBO, good Parish Team and prevailing small businesses as well as potential for new business.  By examining these things, we select the area.

CLIENT SELECTION

The clients are selected through following criteria:

• 18 to 55 years old

• One loan only for family

• Member should be physically strong

• Must be known about importance of saving and have the ability to save

• Should not be a defaulter

• Agree to follow the rules

GROUP FORMATION

We complete the group formation process almost within four meetings, which consist of three to four weeks.

First Meeting

• Personal introduction

• V M G of EDP

• Information about saving

• List of clients names

• Date of next meeting

Second Meeting

• Attendance of participants

• Minutes of last meeting

• Complete explanation of small business

• Clarity about saving, membership, emergency fund, service charges, installment detail etc etc

Third Meeting

• Recap

• By-laws making

• Selection of group leader

• Filling of application forms

Fourth Meeting

• Recap

• Completion of legal documentation

• Collection of membership, saving and emergency fund

• Group certification

LOAN DISBURSEMENT CEREMONY

Area credit group organize the loan disbursement ceremony, area animator, Parish team and CBO executive body fully involved in whole process.  Loan is given to clients in these ceremonies among the whole group.  This ceremony acts as oath ceremony for clients, who would have to follow all the rules and regulation.

MONITORING VISIT

Our success is reliant on our regular monitoring and we conduct regular monitoring visits to build strong relations with clients and check their business activities.  We also suggest them for the business betterment and ways to improve it.  Our relationship helps us for timely recovery of the installment.

MONTHLY MEETING / RECOVERIES

The credit group conduct regular meeting once a month, where they share their problems, successes and suggest each other for betterment.  This meeting makes them alive and way to their regular improvement.  Credit officer collects the monthly recovery installment.

I M P A C T S

• The income of the clients is increasing

• Business of clients are getting strong

• Business trend is increasing

• Social status of the clients is boosting up

• Clients are getting more professional day by day in business