A Society free of discrimination                               

The DEC micro-finance programme was started in 1990 when 69 women belonging to two groups were given the amount of N13,800 as revolving loan fund.  This programme which was first supported by the Ford Foundation and later by Inter-Church Action (ICA) and Evangelischer Entwichlungsdienst e.v. (EED) has grown over the years both in terms of the number of clients and the loan portfolio As at December 2005, the number of clients stood at 20, 620 and loan portfolio has reached N135 million.

The major goal of the micro –finance programme is to provide women with the necessary capital needed to engage in income generating activities.  Such capital is not easily accessible in the formal banking sector due to the inability of these poor women to provide collateral.

The revolving loan scheme is offered to individual women within a group for income generating activities only.  The common ventures in which the women invest their loans include:

• Farming
• Livestock Rearing/Fattening
• Grains Trading
• Petty Trading
• Other small scale businesses

Microstart

In 2000 DEC transformed its ‘old’ micro-finance programme, which stipulates yearly or half-yearly repayment to the micro start scheme, and adopted the ASA methodology which has a payment schedule of weekly installment.  Management’s rationale for this shift to micro start is due to its sustainable nature, and the fact that it achieves rapid and large scale outreach. It is also cost effective; the loan tracking system is simple and enhances cash flow and delinquency management.

With the implementation of the micro-start DEC experienced large drop out of members/clients, particularly the rural agricultural clients, who did not find the weekly repayment schedule suitable. Management has considered the problem and has introduced other loan products that would suit the agricultural clients and even trades whose nature of businesses are more suited for monthly repayment system.

Since inception, micro start recorded almost 100 percent recovery rate, except lately. This default in loan repayment can be attributed to many reasons.  These include seasonal variations, unwillingness to refund and long gestation period of some businesses.  For instance, the nature of business determines the ability of the woman to meet the weekly repayment demand.  Some of the women are also using the loan for non income generation purposes. DEC takes appropriate measures to curtail default through encouraging group savings and intra-group pressure on the defaulters. 

Coverage

DEC is one of the few micro-credit service providers operating in Northern Nigeria.  In line with DEC’s organizational mandate, the micro-finance programme targets 100 per cent women clients.  It serves both Muslim and Christian clients in rural and urban Areas.  Currently, DEC is operating in Bauchi, Gombe, Plateau, Borno, Yobe, Adamawa and Taraba states with a target of reaching out to the rest of northern Nigeria within a few years.

Savings

Microcredits

Other Loans

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Last modified: 12/21/08