A loan of $875 helped to buy cloth in bulk for her business.

Magdalena's story

Mambo from Tanzania! Magdalena M. is twenty-seven years old. She is married with two children, ages one and five. She also has an additional dependent who lives with her because he is an orphan. In 2004, Magdalena established a business selling traditional African cloth that is used by local women to fashion their traditional outifts, called "vitenge." Magdalena runs her shop with the assistance of one employee and earns monthly profits of 400 USD. She is requesting a loan of 875 USD in order to purchase additional cloth and dye to manufacture this African traditional cloth. In the future, she hopes to make enough profit to open another business.

SELFINA has taken a lead role as a pioneer of microcredit in Tanzania. The organization is devoted to the economic empowerment of women in Tanzania through microfinance as a practical way to achieve the economic and social emancipation of women. Customs and traditions in Tanzania normally make it difficult for women to own land and assets; because of this, they are deemed non-creditworthy by financial institutions. This leads to poor financial support, hence poor access to basic needs and services. When a client needs working capital to buy a specific item, SELFINA buys the equipment for said client and extends a loan to her. The same equipment is then leased back to the client so they can use it while in process of paying back their loan, a process called a sale-and-leaseback arrangement. Once the loan has been repaid, SELFINA transfers the ownership of the equipment to the client. The advantage of microleasing over traditional microfinance loans is that is allows clients to use the equipment as collateral for future loans with SELFINA, thus enabling them to borrow larger sums in the future.

Loan details

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Loan details