Synod, Vision Fund Malawi sign pact to promote village savings loans
Blantyre Synod and Vision Fund Malawi have promised people of Neno to work together in setting up of Village Savings Loans (VSL) groups to ensure that rural people have access to financial services.
Project Officer for Blantyre Synod, Cedric Damala said access to small loans to the rural people can make a big difference in uplifting their daily livelihoods.
However, Damala tipped people in the area of Chief Simon in Neno district to have business plans before lending money from financial institutions which are available in their respective areas.
“Apart from lack of business plans to boost your financial capital, it has been observed that many rural people have no adequate skills to run their businesses in a professional manner,” he said.
He then urged men to allow women to take part in decision making positions at local level as one way of allowing them to voice out their challenges.
“Most of rural women are not benefiting much from farming business because women are not given a chance to own a piece of land compared with men,” said Blantyre Synod Project Officer.
In his remarks Vision Fund Loan Officer, Victor Antonio said his organization wants to promote rural people to venture into small scale businesses to change their livelihood for the better.
“Our interest rate is 7 percent and we provide all the clients with business skills for them to prosper in their business. Currently, Vision Fund Malawi has over 289 clients in Neno district who are already doing small scale business,” said Antonio.
He added by encouraging the rural people to be in groups of 10 to 20 people for them to easily access loan from financial lending institutions .
“For an individual to access loan from Vision Fund he or she should have collateral which is not the case when you lend the money in groups such as Village Savings Loans,” he said.
On his part Group Village Headman Somisomi urged his subjects to boost their financial capital by approaching financial lending institutions.
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