Proud graduates of of the Diploma in Basic Rural Technology supported by Lend A
Hand India. Most, have secured jobs and internships in small and medium enterprises
and intend starting their own enterprise soon.
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Micro Enterprise Development (Bridge Loan)
A survey of 400 IBT / MSFC graduates indicated that approximately twenty percent wanted
to start their own enterprises. However, they faced two main roadblocks: capital
and experience. Given their low economic and social status, very few (if any) were
able to access the financial resources needed, in spite of a number of government-sponsored
programs promoting self-employment.
In keeping with Lend-A-Hand India�'s vision of eliminating youth unemployment and
creating viable alternatives to migration, the organization created a bridge loan
fund, whose goal is to make capital and mentorship support available to young entrepreneurs
as soon as they are ready to go out on their own. This is a way of encouraging candidates
to concentrate fully on launching a business and getting started, sooner rather
than later.
A bridge loan, covering capital costs and working capital for six months, is made
available to the young entrepreneur after he or she has performed a feasibility
study with the help of a mentor. The duration of the loan is one year with a rate
of interest equivalent to the bank rate. As soon as the business is launched, the
proposal is submitted to the mainstream banking system.
With the confidence, motivation, and experience gained from actually running a business,
the young entrepreneur is now much better equipped to convince the bank of his or
her creditworthiness. He or she can point, further, to the bank account they have
opened in that same branch of the bank (as part of the application process). It
is a concrete measure of success. |