Microcredit
A loan to start a small business.
A microcredit or self-help project provides for the loan, made by Balò, of a sum of money to recipients to start a small business.
The repayment, with a nominal interest, is made weekly and is based on a fixed fee for a fixed period of about one year. Loans are provided to the amount of some 5,000 or 10,000 Rupees (from about €60 to €150) to groups of at least 3 people. Within the group one is the coordinator but all are jointly liable for each loan. This creates cohesion and a sense of responsibility and the members of the group control each other so that the refunds are made regularly. At the moment the ongoing projects are the opening of a barber shop and some food stalls where the food is cooked and sold along the street kerb.
