Group Loan Product

Esik, 2008
In July 2008 five women from open market Vira submitted group loan request to ACF sub-office in Esik town. This group became the first clients of Esik sub-office.

After Loan Officer Mahset analyzed their repayment capacities and they firmed group solidarity principle, the group received first loan in the amount of USD 500 per one group member. In July 2009 the group was on the 4th cycle already and received USD 2,000 per borrower to expand the business.

While they were waiting for loan disbursement we decided to interview them on changes in their lives and families that happened during their one year relationship with ACF.

They were happy to respond and shared with us the following:

Raushan, Group Leader:
Study--group1Before I came to ACF I traded shoes in own container at Vira market. In one year of my work with ACF I managed to open second container at the same market. My husband helps me there. My sales turnover increased three times. Profit from expanded business increased and I was able to build up new 5-room house in the center of Esik. We are happy to see our business becoming more stable! Thank to our new partner ACF we are living in new house.

Maryash—Group Treasurer:
When I took the first loan I was selling clothes at open market Vira. I had about USD 1,300 in inventories with limited assortment. As of today, my working capital increased more than two times and my assortment expanded. Besides, I was able to help my nephew and paid one-year university tuition fee for her. Relationship among group members is strong; we help each other with business issues. I am very thankful to our group and ACF for all support they provided to me.

I cannot brag about big increase in the business, I sell second hand clothes. Loans from ACF helped me to keep inventories at the level, which provided good income for my family.

Study--group2I am in sewing of national costumes business for almost 12 years. I sell them at the open market by myself. When I started working with ACF, I had inventories for USD 2,000. In one year, I was able to increase production two times. My costumes are in a good demand. I extended my assortment by adding national jewelry. Near my old house, I built up new 4-room house, which I am planning to rent out.

When I started working with ACF, I had good shoe trade business; my working capital was about USD 1,500. My business became stronger after getting the loans. In one year, my sales as well as inventories increased two times. Income from business allowed me to pay for wedding parties of my two daughters. My group partners helped with business advice, we became good friends with them.