Na'er Village Women's Micro Credit Scheme

In 1998 a visit was paid to Na'er to conduct a baseline study and see whether a rural credit scheme would be appropriate, and what other assistance DORS could give. We discussed the credit scheme with the Women's Cadre (photo left), village Party Secretary and some other women in the village. We made a second visit a few weeks later to distribute loans. In a meeting with the Women's Cadre various repayment schedules were discussed. Making loans in October meant the first 6 monthly repayment would be due in April, the Women's leader was concerned that there would be difficulty making this repayment as there is no produce to sell at that time of year. Alternatives such as three repayments were discussed. The Women's leader finally decided on two six monthly repayments but with the first repayment smaller than the second. Loans were made to women in hamlet 1. They decided to form one small group. The following day at the Women's Cadres' house, loans were made to the women from the other hamlets. In total 18 women took loans. More would have borrowed if the repayment schedule was after one year rather than six monthly. Most women borrowed the maximum of 1000 RMB, and all agreed to two six monthly repayments. The management fee for each woman is 50 RMB, divided up between the two repayments.

Repayments of this first batch of loans were made in full and on time. DORS loaned to Na’er for a second time in 1999, this time 25 women took loans.