Today we contributed $25 to Zareena, a woman in Pakistan who runs a livestock business. Her main responsibility is to buy baby goats from animal markets, raise them, then sell them for profit. She is asking for a loan of $925 to buy a buffalo, in hopes that she will be able to sell milk in her community.
Zareena has one school-age daughter, and three young children who are not old enough to attend school. We hope that this loan will enable her to earn enough money to provide for her children and have them all educated.
The average annual income per capita in Pakistan is USD$3,004. The Field Partner assisting Zareena with her loan is charging her 34.08% interest (keep in mind that interest goes to the institution, not the loaner). This seems high, but this rate is low compared to what some microcredit institutions charge. I think it defeats the purpose of helping these businesses to become profitable if they have to pay ridiculously high interest on their loan. Therefore, I only support Field Partners who charge their borrowers less than 35% interest.
So far, 8% of Zareena’s requested loan amount has been raised. Hopefully, the remainder of the funds she needs will be contributed by the end of the week. I will update you when this happens, and we will soon make our second loan!