Micro Loans

“A Hand up not a Hand out”

What is a Micro Loan?

The provision of a small loan (£10-£250) for those who are too poor to have access
to conventional financial services.

What is the purpose?

The loans are intended to promote economic development in communities, allow the
less fortunate to reclaim their dignity and provide a better life for the borrowers and
their families by setting up (or restarting) new businesses and opportunities.

What are the benefits?

Provide finance, no interest is charged, no security taken and no legal redress in
event of default.

How does it work?

D1040 donates “seed fund” to an Overseas Club.
The Overseas Club grants loans, repayment terms are set and monitored by them
within parameters set by D1040. Businesses start, make profits and repay loans as
agreed.
The Overseas Club report back to the UK partner Club at agreed timescales, usually
six monthly.
Loans roll over and the available capital is lent again to new clients.

Who can borrow?

This very much depends on local circumstances. The list is endless. To date -
grocers, brick makers, mechanics, farmers, jewellers, tailors - have benefited.
Where are the current schemes?
The scheme began in 2005. Schemes are currently working in Sri Lanka and Nepal.

How can you help?

Identify an Overseas Club who might be interested in administering a scheme.
Mentor a scheme as part of your International Services projects.
Donate funds to the M L S district fund.

If you are interested in becoming involved please contact:
Roger Cannon, District 1040 M L S Co-ordinator. Tel 07818896866