Small scale loans to alleviate poverty in Tanzania

Small scale loans to alleviate poverty in Tanzania

Tanzania is an east African country where poverty has been a major issue. There are families who cannot even afford the basic necessities of life. It is the introduction of small scale loans which has gained an adequate control over poverty by improving the financial conditions of families in Tanzania during the past few years. With proper utilisation of these small scale loans people of Tanzania have gained social, psychological and economic development to a huge extent.

Following are the noticeable changes in Tanzania through small scale loans-

Income Generation: Before the introduction of small scale loans, It was close to impossible for most of the women in Tanzania to generate sufficient income for their well being. Most of the families were not even able to avail the basic necessities of life like food and shelter. Women could not even think of generating some income on their own and support their family. Small scale loans made the impossible possible and added a countable change in the life of people in Tanzania. With support from small scale industry loans women were able to start few income generating activities to fight against poverty. Income generated helped these women to provide their family members with basic requirements of life like food and shelter.

• Housing: Before the availability of small scale loans the condition of houses in Tanzania was not that good. There were few houses which had no doors and windows even. This was all due to the lack of funds to the families. Micro loans with instalments helped these families in improving the condition of their house by adding doors, windows and other missing necessities.

• Food Availability: There was a time when most of the families in Tanzania were unable to afford 3 meals a day for their members. Children had to sleep many nights without having food. Micro loans through mobile banking transformed these horrible nights into good one's by creating availability of sufficient food. Now most of the people can afford at least 3 complete meals a day.

• Electricity and water facility: Now women do not have to travel long distances and get water from the well. Almost every house has got electricity and water taps which save lots of time.Women are able to complete their household work on time and spare some time for other income generating activities.

• Medical facilities: Earlier people use to avoid medical treatment when required, as they were not able to afford it. Availability of small scale loans helps people in Tanzania to avail medical treatment either at government or private hospitals depending upon the requirement.

• Education for Children: Before small scale loans, the illiteracy level of Tanzania was very high as majority of people could not afford school fees. Women use to avoid sending their children to school and make them help her with household work. Zero interest micro loans helped Tanzania people in paying school fee and other basic requirements like books and clothes. Now children go to government or private school to make a better future for family and the country.

Every human being is free to make his own choice. Important is, whether you sit back and face the consequences, believing its your fate or you come out of the box and fight. No problem is big, unless you consider it to be big.

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What is International Fund Transfer via M-pesa Mobile Banking Services

There are many international corporations which deal in microfinance and are operating in African countries like Tanzania and Dar Es Salaam. Such international corporations offer micro-loans to the needy people of Tanzania and Dar Es Salaam through mobile banking. Customers can easily avail these micro-loans sitting anywhere and anytime following few simple instructions. These corporations are connected to all major mobile service providers like Vodacom and Airtel in Tanzania as well as Dar Es Salaam to support smooth money transfer.

These telecoms service providers are in business with M-pesa, which further provides money transfer services through mobile banking. M-Pesa basically allows us to transfer or receive money through mobile phone in private and secure manner. There are various utilities that can be handled using this service like:

• Bill payments
• Receive money from micro loans
• Share money with friends/family
• Savings

But, there are few requirements which you need to fulfill before availing M-pesa service like:

• One should have a national identification card required to open M-Pesa account and complete the registration process.
• There is no need of any bank account or application form to complete the registration process.
• After the completion of registration process, one can easily receive money in the form of micro-loans.
• To confirm the transaction, the mobile service provider sends a confirmation message to the sender as well as the receiver of microloan, which can further act as payment receipt.

        Benefits of money transfer through M-Pesa account:

• Private: Any type of data, which is related to transactions made through M-Pesa mobile banking services, remains private. Only sender and the receiver get a confirmation message.

• Safe and Security: Money transfer on the mobile phone will reduce the risk followed by manual bank transaction. Moreover, the transactions are fast hence increasing the safety and security of your money.

• Supporting the unbanked: There are many people in Tanzania and Dar Es salaam who cannot avail banking services due to poverty. Banking through mobile phone will reduce the operational cost, offering flexible and affordable financial services to these needy people.

 L-Pesa micro-finance is one of the international corporation, which provide micro loans to the needy people of Tanzania and Dar Es Salaam using M-Pesa mobile banking services. All you need to do is register your mobile number with L-Pesa and apply for micro loan. The registration process is open for now. To know more about L-Pesa micro finance registration process and its services, visit www.l-pesa.com .

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How to register yourself to L-Pesa for availing Microloans?

Recently, L-Pesa has proudly announced the opening of “Registration” on its website. L-Pesa is basically a financial services company which offers microloans. The uniqueness about L-Pesa is that you can apply for these microloans sitting anywhere around the world using mobile banking. All you need to do is complete the registration process and login to apply for your first microloan from L-Pesa. Follow the step by step instructions mentioned below to register yourself on L-Pesa:

Step 1- Visit the website www.l-pesa.com.

Step 2- Click on the “Login” button, which you will find at top right corner of the home page.

Step 3- Now you will see two options on your screen, “Sign up” and “Login Here”. We will start with “Sign up” first. Enter the mobile number which you want to register with L-Pesa in the space provided, along with the country code. Click on “Get code”.

Step 4- You will receive an SMS from L-Pesa on the registered mobile number. Open the message and note down the four digit code provided in the message.

Step 5- Now, enter the registered mobile number along with the country code and the four digit verified code under the option “Login Here”. Click on “Login”.

If the required credentials are filled properly, you will be redirected to another page i.e., “Dashboard”. This dashboard shows the list of microloans which you can avail with L-Pesa. The loan depends upon the credit score of your account. Initially you are eligible for a microloan of $5, as your credit score is zero by this time. To apply for your first microloan of $5 from L-Pesa, click on “Get Loan”.

To increase your credit score with L-Pesa and be eligible for the microloan of higher amount, all you need to do is timely repayment of the present loan. For e.g.- You have taken $5 from L-Pesa as your very first loan. Now pay this loan amount within the specified time to increase your credibility (Credit Score). Increased credit score will automatically open the application for microloan with higher amount i.e. $10. That means, each time you take a loan from L-Pesa and pay back in time, you increase your credit score as well as your eligibility to apply for higher loan amount.

If you follow the above-mentioned steps properly, you will not find any problem with the registration process. Still if you do, feel free to contact us for best micro loan company Dar Es Salaam.

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