Loan groups get K19m boost

Foundation for Irrigation and Sustainable Development (Fisd) in collaboration with Blantyre District Council has disbursed K19 million to 24 village savings and loans groups (VSLs) in Blantyre.

In an interview on Monday, Fisd savings, credit and gender coordinator Amy Tchongwe said the funds seek to empower rural communities to engage in sustainable income-generating activities to support their livelihoods.

She said: “The K19 million is a revolving fund which beneficiaries will pay back at an agreed period so that others can borrow.

“We target groups which comprise men, women and the youth in traditional authorities [T/As] Kuntaja, Makata, Lundu and Machinjiri.”

Tchongwe said they identified the groups based on their cohesiveness, goals, record keeping and how they manage their own loans.

“The successful ones acquire the loans and those that fail are monitored so that they meet the requirement to access the loans. Currently, the loan is payable in four months and attracts six percent interest,” she said.

Kasimonje VSL Group chairperson Kalimwayi Phiri from T/A Lundu, said the loan will boost their small-scale businesses.

“Youths who finished school struggle to access loans to venture into businesses. The loan will, therefore, give them a starting point to run their own businesses,” he said.

A community member Jailosi Chimenya from T/A Machinjiri commended Fisd for the initiative.

“It is difficult to access loans from financial institutions these days,” he said. 

The revolving fund is supported by World Food Programme.