The Power of Small Loans

Photo by Ashraf Adeeb/CRS

ABU TEIG, Egypt — Nawal Hassanean Mohamed lives in central Egypt. Since 2005, she has been a client of a women's income generating project funded through the African Development Bank and Catholic Relief Services. She receives her loans and services through CRS' local partner, the Assiut Businesswomen Association.

Nawal's first loan was for only $88. Though it may not sound like much, this introductory amount is standard for new clients, who pay it back over six months at 18 percent interest. Nawal used her loan to start a cooking-gas distribution business around her community and neighboring villages.

As she showed herself to be a good client, Nawal worked her way up to a loan limit of $526. Her business has grown and she has expanded to other communities. She recently entered into negotiations with warehousing officials and secured a larger space that she will use to do more business. Nawal's success has allowed her family to save enough money to help her son get married.

An Opportunity to Escape Poverty

CRS Egypt's microfinance program provides small loans, averaging $130 each, to approximately 10,000 poor women. The loans are used to start or expand small businesses and give the women an opportunity to escape poverty.