Tapulanga Micro-Credit Fund

Established in May 2005, we hope to provide opportunities for small-scale entrepreneurship in the Hda. Tinihaban and neighboring communities.

In the spirit of Christ who came for those who need Him most, the fund is for those who really need it. We believe that those who do not own anything should have the highest priority in borrowing. This is a different approach compared to how commercial lenders operate today, which makes it almost impossible (or very expensive) for the poor to borrow money. We don’t look at the material possessions of an individual but rather their potential. The opportunity for entrepreneurship should be available not only to those who are educated and well-to-do but to every person who wants to pursue it.

Our approach to service is to bring the opportunity to the poor’s doorstep, instead of having them come to us. We will take a proactive approach to finding and encouraging the would be entrepreneurs in our community.

We will not discriminate among men or women borrowers, in fact, we will strive to encourage more women borrowers. In a society that is mostly dominated by men, we will encourage the women to unleash their creative spirit and bring out a new class of entrepreneurs.

The fund will not lend to single-entity borrowers. Each borrower must form a group of two or more to join in their enterprise. We believe that enterprises are more successful if more than one person/family runs and plans the business and there is better accountability when there are more individuals involved.

The Tapulanga Micro-Credit fund is not going to be a for-profit fund. We will try to at least break-even but we will strive to raise funds through donations from our donors and other fund-raising opportunities.

There will be no contracts and no stipulation of any kind that a client will be taken to court or will be harassed to meet their payments. Everything is based on trust and understanding and if a client is unable to meet their payments, the fund will be proactive in trying to help the client overcome their difficulties and may even provide more funds if needed.

In the case of death of the borrower, the family does not inherit the loan and it is deemed fully paid.

The interest of the loan will be very low (maximum of 5%/year) and will be computed as a simple interest rate (no compounding). The interest charges stop accumulating when they have equaled the principal of the loan. For very special circumstances, the fund may lend money at 0% interest. Payment will be on a bi-weekly basis.

The fund will also counsel the family with regards to health, education for their children and help in any way possible in guiding the borrower with their business objectives.