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Small loans for business activities changed lives of Internal Savings and Lending Group members

Internal Savings and Lending Group

The savings groups created and formed by Caritas Rwanda through the USAID funded Gimbuka program are now a source of income and the families of its members benefit from these results 

MUKANDAMIRA Annonciate belongs to the Internal Savings and Credit Group (ISLG)Tubumwe_Mubuga in the village of Ryaruhanga, Mubuga sector. this Internal Savings and Credit Group (ISLG) began in February 2016, and since then, members of the group have saved money and obtained loans from their accumulated savings. 


Their group started with about twenty-five members, but some of them withdrew during the first few weeks of operation because they had difficulty repaying their loans, but the ISLG welcomed most of the newcomers.

 "There are now twenty-eight of us, relying on each other makes us stronger and we are confident that our sustainable development objectives will continue to be achieved on an ongoing basis. Says Annonciate

She also added: "I am very grateful for USAID's Gimbuka program because it made us realize that we are not poor, but that we need the knowledge and opportunities around us. Before, we had no chance to save money and plan, but that's exactly what USAID's Gimbuka taught us."

Annonciate now has a license to produce and sell bricks in the Mubuga area that was provided by the Karongi district.  All this is due to the small loans she has obtained from ISLG and used in small businesses such as the trade in ripe bananas and banana beers. 

"At the beginning of my business-oriented initiatives, I used to obtain small loans from Tubumwe Mubuga ISLG ranging from 50,000 to 150,000 Rwf  to manage the above-mentioned companies, guided by the skills disseminated through our community intermediary who formed our group." She adds 

 

Internal Savings and Lending Group
MUKANDAMIRA Annonciate belongs to the Tubumwe_Mubuga ISLG in Ryaruhanga village

Later, she realized that ISLG's loans were no longer sufficient to ensure the growth of her business since she had started manufacturing and selling bricks informally, which required a lot of funds.  It therefore approached Mubuga SACCO, of which it is a member, as part of the loan application process in June 2017 and received 350,000 Rwf to strengthen its activity. 

Gradually, she continued to work in collaboration with SACCO by applying for various loans and repaying them normally to this day. Recently, she obtained a loan of 1,000,000 Rwf from Mubuga SACCO and the repayment is made without any problem.

 "As long as my company is running well, I am proud to have an average of 16 employees working per day, each of whom I pay at least 1,500 Rwf per day. Thus, an average of 500,000 Rwf is paid to my employees who are mainly women and young people and this makes me happy because it is a kind of new job opportunity". She says 

Today, his brick production and sales company has a working capital of about two million and five hundred thousand Rwandan francs (2,500,000 Rwf). Moreover, her whole life has changed. "Look how well I am today." She laughs and says.

 

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