* Any views expressed in this article are those of the author and not of Thomson Reuters Foundation.
(c)Tdh/JL.Marchina
Terre des hommes Albania in collaboration with a local NGO by the name of Common Action Against Poverty (CAAP) and New Opportunity Albania (NOA) Financing, has been directly supporting families in need by providing conditional micro loans since the beginning of CPSN project.
Conditional micro loans are loans made available to families wanting to operate a small private business as a mean to dealing with economic hardship. To help these families provide adequate material care to their children, Tdh through CAAP pays half of the full amount of the micro loan, while the remaining amount is paid by the family in small installments on a monthly basis to NOA Financing. Families who cannot provide for the care, upbringing and education of their children due to economic difficulties; families who wish to increase their income by operating a small private business; and families who are able to regularly pay the monthly installments of the micro loan, can apply to benefit from this project, upon the condition that the increased budget of the family benefit children and ensure their schooling.
Mrs. Resmije Xhihani, beneficiary of a micro loan, tells us her story
Why did you decide to apply for a conditional micro loan?
Being the sole provider of a poor family of 7 people is not easy. You have to always look for different ways to provide for your family. After engaging in a variety of work which helped me generate only little income, I saw the possibility of a small business as the only opportunity to having secure earnings for my family. So I decided to be involved in the business of selling second hand clothing. I initially started the business with the earnings I had managed to save, but since that was a small amount, I could only afford to buy merchandise that was of poor quality. Nevertheless, I tried selling the merchandise. The business was not doing well and my profits could barely cover for food and basic clothing for my family and grandchildren. One day, when I attended one of the activities organized by the Community Counseling Groups (CCG)* in my community of Driza, Fier I learned of the conditional micro loans. Immediately, I thought of this opportunity as the solution to my economic problems. After consulting with one of the CCG members, who kindly explained to me all the risks and benefits of taking this loan and also offered to support me with the application process, I decided to apply and be a beneficiary of this project.
Can you please tell us of the outcomes benefited from receiving the conditional micro loan and name any challenges faced?
To say the truth, at the beginning I was scared. My illiteracy intimidated me a lot. I was worried my application would be rejected because of it. But the CCG member reassured me that my application would not be affected by my illiteracy. He explained to me that as long as I was serious about applying and would regularly pay the monthly installments, on time, I would be okay. And so I did! The conditional micro loan allowed me to purchase merchandise that was of better quality than the one I was selling before.
Selling merchandise of quality helped my business grow and increased my profits. With the income received, I was able to expand my business to also selling perfume, jewelry, kitchen utensils, toiletries, etc. The variety of items I am able to sell today helps me secure enough earnings to provide for my family and my young grandchildren. Aside from food and clothing, I can afford to send my grandchildren to school; I can buy their books and school materials; and can even afford to have my grandkids attend any school organized fieldtrips and activities. There are a lot of things which my family and our house still need. But simply, we are doing well!
Based on your experience with the conditional micro loans, would you advise other members of your community to apply?
I would tell them to consult with a CCG member to see if they qualify and if they do, I would advise them to apply right away. Even if they are not already running a small business, they can apply to start one. It’s a good opportunity to increase income and improve living conditions. It can help them provide for their children or grandchildren and ensure their education and wellbeing, like I did.
* Community Counseling Groups (CCGs): Supported by Terre des hommes in the framework of developing a child protection system in Albania, the CCGs play an invaluable role in mobilizing communities towards addressing child protection issues and linking them to the relevant public and non-public service providers in their local area. In addition, the CCGs help identify and refer cases of children in need or at risk of abuse, exploitation and/or trafficking to the relevant local child protection structures.
