Our microloan project provides a small loan to local recipients to start a business. Loans are made to groups of at least three people for 5,000 to 10,000 rupee ($70 – $140) a year. Participants are expected to pay back a small portion each week with a minimal interest.
Each group has a coordinator, but all of the members are jointly responsible for the loan which creates a cohesive working collaboration. Currently Balo is funding a barber shop and multiple street-food stalls. Several of the ventures have been particularly successful. They paid back their original loans and received a larger loan the next year to expand their business.
