Group Intermediation in Ghana. The Credit with Education Programme

Publication Date: 2004
Published by: London, UK: Alternative Finance
www.alternative-finance.org.uk
Document Type: Case Study

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A regular saving program involving a NGO and a rural bank

The author states that the formal banking system has failed to notice the potential profitability of microfinance activities. Citing the example of the NGO, Freedom from Hunger, the author points out that its collaboration with a rural bank, resulted in social development of the poor through provision of micro-credit to SHGs.

The author states that since moneylender took advantage of the lack of sufficient micro-credit for the poor, village banking was initiated by Freedom from Hunger and was termed Credit with Education. Some of the characteristics of Credit with Education are:

• This program tries to bridge the gap between banks and rural poor by networking with commercial banks,
• It helps poor and active women to form self help groups and enables them to receive, manage and repay loans for income generating activities,
• The improved income status of women results in improved quality of life and health status of the family, particularly of children,
• The program has generated outstanding savings and thus promises to become the major income earner for the banks.