Microfinance is a core part of MASYAP’s work. Poverty is a key driver of HIV/AIDS in Malawi and around the world, so helping women earn their own income is one of the most effective ways to fight the effects of the disease.
- 250+women on the scheme
- Interest-freeIslamically acceptable loans
- 4 monthstypical loan cycle
Training first
Before receiving a loan, every member takes part in training on setting up and running a business. Members learn about cost and profit, budgeting, saving and managing debt, so that their businesses are worthwhile and their loans are repaid successfully.
How the loans work
- Qard Hasan loans: small, interest-free cash loans, usually repaid in monthly instalments over four months after a one-month grace period. As loans are repaid, the money is lent again to other members.
- Murabaha: instead of cash, members receive business equipment, such as sewing machines, deep freezers or catering pots, and repay its cost in instalments on Shariah-compliant terms.
- Savings programme: members who complete their loan cycles move on to our savings programme.
Follow-up visits
Our microfinance team visits members at their businesses after every round of loans, to check progress, help solve problems and make sure loans are used for their purpose.
Read about the youth microfinance scheme for young women.
