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The Youth Finance Scheme (Microfinance)

 

The Youth Finance Scheme which was hatched in 2015, mitigates youth unemployment, enhances employability and promotes self-reliance, by inspiring and empowering young people to start up their own enterprises. 

The Scheme provides tailored but guided loans and enables beneficiaries to lead productive and sustainable livelihoods.

Uganda’s population is growing so fast and the majority are young people aged between 18 - 35 years making up 75% of the total population. 

Whereas huge populations could be so nice for development, it is disadvantageous to countries like Uganda where most of the young people are unemployed, often redundant and thus posing as a social threat to society.

The lack of a strong labor market to absorb youth, a mismatch of skills possessed by youth and those required by the available labor market, low levels of education evidenced by the lack of knowledge to start and run own enterprises, and the limited access to loan due to lack of collateral needed by the main financial institutions are some of the reasons behind youth unemployment in Uganda. 

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How it Works

How does the Youth Financial Scheme work?

All participants meet quarterly for 3 hours to share business success stories, experiences, offer each other suitable support and learn new and best practices for the success of their businesses.

Mentors are facilitated with a small monthly token for transport and phone calls to make regular supervision on the progress of the business and offer the necessary support and guidance. 

This is how your involvement transforms lives

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All participants are given a grace period ranging from one month to seven months depending on the nature of the business ( this is on the presumption that after this period their business would have started making incomes to commence monthly repayments) and then a repayment period of one year.

Loan repayment is made in monthly installments. The loan carries an interest of just 2.5% per month! From the monthly paybacks, we enroll new participants to expand the scheme.

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Youth opens up a bank account in a provided bank and the mentor is a second signatory to this account.