SEF was set up as a poverty alleviation programme, providing credit to and savings services to women with micro-businesses
A potential client forms a group with four other women whom she knows very and trusts. Each of these five members then has to apply for a loan for their own individual businesses. The five group members are required to guarantee one another’s payments. No other collateral or security is required. Clients can access loans from R1 000 to R2 200 to invest in their businesses. Loans are available for four, six or ten month durations and can be repaid through fortnightly or monthly installments.
Our clients meet during fortnightly meetings which represent an opportunity for loan repayments and savings collections as well as a platform for formal and informal guidance on business practices, financial management and health related topics. As a client’s business grows, she can access additional capital up to R22 000.
When we partner with a new community, we ask the local residents to help us identify its most vulnerable members. We do this by the Participatory Wealth Ranking (PWR) system which assess prospective clients’ poverty levels. The PWR process determines whether a household qualifies for SEF’s services.
Source: http://www.sef.co.za/
The Small Enterprise Foundation (Owner)
