Western Bureau:
WHEN THELMA YOUNG of JN Small Business Loans Ltd. says that the company has close to 7,000 borrowers to the end of March, that is only an indication of the impact the initiative has had.
"There are repeat loans, when you pay off in time," she said. So, for the one-year period to the end of March this year, close to 7,000 persons have accounted for well over 15,000 loans, for a whopping $476.76 million.
There is a sobering statistic within the statistic, though. "Of that number, 73 per cent are women," Ms. Young said. "It is not a deliberate strategy, just based on demand."
Taking a chance with the micro businesses seems to have been rewarded with a distinct effort to pay up on time. The company puts its overdue debtors into two categories - those over seven days and those over 30 days.
As of the end of last month, less than five per cent of loans were over seven days outstanding and less than three were outstanding for over 30 days.
"The majority will pay and want to pay," Ms. Young said.
And the company also takes a no-nonsense approach to not paying loans on time. "If you are supposed to pay Thursday and you do not, on Friday morning we will be calling you," Ms. Young said.
The overwhelming majority of the loans - close to 80 per cent - are given to persons in distribution, as in shopkeepers, market vendors, higglers and ICIs. Less than three per cent goes to agriculture, less than seven per cent goes into manufacturing, close to 12 per cent is in services and a tiny proportion goes to transportation, mainly taxis.
The employment that the loans generate is significant, the company putting it at 9,500 jobs for the year.
And this employment is generated right across the age range, what with the lower age limit for loans being 18 and the upper limit based on the loan officer's judgement of that person being able to run a business. Presently, there is one borrower over 70. There is no life insurance required.
