OMI_Micro-Loans

How it works:

OMI is currently partnered with the Sarah Dorairaj Memorial Trust (SDMT). SDMT is a Christian based organization that has a successful ongoing micro-loan program in India.

The Sarah Dorairaj Memorial Trust provides micro loans to needy women in Chennai.Chennai has a population of more than six million people one third of whom live in poverty. SDMT’s target group is the marginalized poor women who are exploited and oppressed economically, socially and politically.

SDMT makes a small loan available to each member of a group consisting of 15-30 women. Each woman uses the loan to increase her income while repaying the loan over a period of 6 months at 1.5% interest per month. The interest is used to pay the costs of administering the loans, advising the women and growing the fund. Groups meet once a week with a supervisor who collects the weekly payment and gives advice and instruction. Each meeting starts with prayer.

This sounds very simple but it works! SDMT has a 100% repayment rate and all the women gain some increase in income and/or quality of life. Several have been able to develop their businesses to the point of employing others and some have even reapplied, received new larger loans, and will soon be ready to borrow from banks instead of SDMT.