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.