KHF Outreach
New Revolving Loan Funds Designed to Meet Needs of Jordanians in Poverty Pockets
4th March 2012
KHF Ex.Dir. Hana Mitri Shahin at signing ceremony with Sana' Al Bakri, Head of Sharhabeel Bin Hasna Assn.
Four community based organizations signed agreements on February 26, 2012 with the Noor Al Hussein Foundation's Community Development Program to operate and manage newly established revolving loan funds in Northern Ghor.  This move is part of the Poverty Pockets Empowerment Program, which is funded by the Ministry of Planning and International Cooperation (MoPIC) and managed by NHF's Community Development Program .

This exciting development introduces, for the first time, two specific loan products designed to respond directly to the needs of the 'target' population:

"Part of the allocated money will be given in the form of a loan to be spent on a family's basic needs and for home improvements," explained Mohammed Al Zoubi, Director of NHF's Community Development Program, "while the remaining funds will help support micro-enterprises which in turn promote productivity, self-employment, and entrepreneurship.”

The CBOs in Northern Ghor received an initial capital investment of 40-thousand JDs to support micro-enterprises, while the remaining sum of 20-thousand JDs will be disbursed as loans to help improve recipients' household conditions and living standards.

The four CBOs that will manage the revolving funds in their communities were selected based on a strict set of criteria that looked into the institutional and financial viability of the CBO in addition to its ability to reach those most in need in the respective communities.

Muhammad Hamdan, a representative of the Waqqas Association, one of the four selected CBOs remarked, “Our purpose is to improve the socio economic conditions throughout Northern Ghor by changing individual mindsets from that of a recipient of government aid to that of a productive member of society who helps build his community and gives back to his people. We are here, with the support of NHF and MoPIC, to expand these principles.”

NHF, over the course of the next month, will sign similar agreements with 19 other CBOs in six other different poverty pockets in Jordan.

The foundation's successful history in micro credit began in 1989, when NHF pioneered the establishment of revolving loan funds in local communities to empower rural Jordanian citizens. Those revolving loan funds, managed by local CBOs are still operating today in 20 villages across Jordan.  2,700 loans have been disbursed and 50% of the recipients have been women.  The average repayment rate on the loans totaling 1.7 million JDs has been 77%. 

Since 2006, six additional revolving funds have been established under the Poverty Pockets Empowerment Program with MoPIC and turned over to six CBOs. Three hundred loans were disbursed through the CBOs and 62% of all recipients were women.  The loans total 580-thousand JDs with a repayment rate of 80%.   

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