A Business plan must be provided for each loan. Our Timor Leste Country Manager assists with this process and all loans are reviewed by the Australian directors to ensure viability. No interest is charged unless the loan is severely in arrears. An initial establishment fee of 10% is charged plus 10% per year to cover administration and banking cost.
Funds for the loans come from Australian donors. All funds from donors are a gift and are recycled into new loans. No repayments are made to donors.
The impact of these loans is almost beyond our imagination. Timorese people are hard working and are looking for a hand up not a hand out. To date we have helped over 100 families improve their lives with loans and this then flows on to also help the communities because sustainable businesses mean more cash in the community.
Orlando, TLup Timor Manager has passed on this feedback from people in the districts – “When they’re receive the money, the people are happy because before, other micro finance organization also operated in Iliomar but only for a few months then they stop their activities in Iliomar. So the people say that TLup still continue program in Iliomar and because the Loan is no interest more families like the TLup program and need to be involved it”
Our newest loans are for businesses such as cake making, small shops, motorcycle repair shop and a yarn shop. We have also made a loan to a blind father of 7 children, for a corn milling machine. This man has had a previous loan for a coconut shredding machine which he repaid on time and this second loan will enable him to have continuity of work throughout the seasons/year.
Most loans are repaid in full and on time. There are always a few that are slow but we are pleased with the peoples’ intent to pay as soon as they can and we have a repayment record that most banks would envy, with no loans defaulting and a few in arrears.