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Financial Services: CARE provides savings and loan opportunities to the poor through a variety of financial service methods and programs, according to the available local conditions. Typically, CARE works with existing community groups, micro-finance institutions and large banking organizations to deliver these services. When necessary, CARE provides services directly. CARE's methods include:
Individual Lending Method: provides equipment and working capital loans to small and micro enterprises that are typically larger and more formal than those receiving group savings and loan services.
CARE Egypt's GSME Program has established four self-sufficient local lending institutions in Upper Egypt to provide loans to individual enterprises.
Solidarity Group Method: provides savings and loan services to self-selected groups of four to six persons to support micro enterprises and income generating activities. Solidarity Groups are commonly used to reach micro entrepreneurs in market places and peri urban and urban settings.
CARE Zambia's PULSE Program has five branch offices in Lusaka to maintain over 5,000 active savings and loan clients.
Village Banking Methods: provides savings and loan services to self-selected groups of 20 to 40 people while training them to manage their own loan funds. It is commonly used in rural and outlying urban areas for very poor households.
CARE Guatemala's Village Banking for Women Program maintains an active portfolio of more than 6,000 women clients across four departments in central Guatemala in more than 150 village banks.
Community Managed Revolving Loan Fund (CMRLF): targets informal groups of 25 or more participants, mostly women, who have joined together to work as a mini bank and help each other with their finances. The CMRLF members mobilize their own funds, and are required to save. CARE usually capitalizes the fund initially, either in the form of a grant or a loan, until the CMRLF becomes sustainable without outside funding.
CARE India's CASHE program works through Institution Building and Training and uses community-managed revolving loan funds called “Self Help Groups.” Currently, more than 200,000 women are involved in approximately 15,000 groups.
Community Savings-Based Services: enable very low-income groups to collect, manage and lend their savings deposits to members, thus capitalizing their savings and providing cash and/or loans in times of need.
CARE Niger's Mata Masu Dubara (MMD) enables rural woman to collect and mobilize savings for small loans to members. The project does not provide any financial or material assistance and the participants are responsible for mobilizing all funds. MMD members are able to save, earn money by loaning their savings, and obtain ready access to small loans for immediate needs and/or small economic activities. With more than 5,500 associations formed and more than 165,000 active members, MMD has become the largest micro finance network in Niger. Click here to learn more about CARE's MMD program.
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