FAQs
What is Microfinance?
Microfinance is a range of financial services such as savings, loans, insurance, etc provided for the poor and low income earners and their enterprises.
What are the objectives of microfinance?
A program that aims to:
• Generate self employment
• Assist in reducing poverty
• Sustain livelihoods
• Assist small and micro business operations
• Offer basic business training
• Provide skills training
Who is the microfinance service for?
Men and Women who are:
• Willing to save
• 21- 60 year of age
• earn not more than $100 per week in a household of 5
• willing and physically capable of participating in an income generating activity
• with good attitude and behaviour
• willing to comply with program procedures and guidelines
Who benefits from the microfinance savings?
• open to all citizens of Fiji who live within the areas where microfinance programme operates
• is a prerequisite to obtaining loan
• $0.03 per dollar is charged as service fee, the fee is withdrawn once loan is obtained
What are the loan amounts?
• 1st loan - $200 -$250
• 2nd loan – $250 - $ 400
• 3rd loan - $600 -$800
• more than $800 will be considered with merit
• different microfinance institutions offer varying loan amounts
What are the loan repayments?
• repaid over 4-12 months
• next loan will depend on paying the fist loan, savings accumulated and ongoing business
What are the training and service fees?
• 10-25%
What are the procedures in becoming a microfinance client?
• attend orientation meeting within communities
• start savings at least 3 months
• attend business training ( 1 week)
• application appraisal and disbursement
What does the microfinance training cover?
• microfinance orientation
• credit and savings
• household business management
• basic business management
• values formation
How will the microfinance program help the clients?
• save
• finance a micro enterprise
• encourage self employment
• utilize skills for income generation
• diversify into new business ventures
• increase household income