How We Work
Five Talents targets those at the bottom of the economic ladder. We use the grassroots network of the worldwide Anglican church to help identify projects and local partners. We insist on strict reporting and make on-site visits to ensure good use of loan and training funds.
The Group is the Key
Local banks cannot afford to lend small sums of money to many entrepreneurs who have little or no collateral. The risks are too high.
But Group-lending is a proven methodology of micro-enterprise development. Groups are normally formed of 5-10 people who self-select each other. Each member of the group co-guarantees the loans of the others. This peer pressure ensures high repayment rates, averaging 85-100%. The group method also reduces the costs of loan administration, monitoring and follow-up.
Principles governing programmes
- Strong local leadership and governance , outside the church structure.
- Value-based principles focusing on poor
- Financially sound
- Vision for individual and community transformation (holistic)
- Heart of a Pastor. Mind of a Banker
Programme Models
All Five Talents' programmes have a strong emphasis on business training and encouraging people to save. Each programme is adapted to the local needs and context, and two basic models are in operation:
- Credit-led microfinance: This is where the loan-fund is provided from external capital from Five Talents. (e.g. Uganda, Tanzania and Peru)
- Savings-led microfinance: This is where the loan fund is made up of the accumulated savings of the group members themselves. (e.g. Kenya, Thika; India, Chennai)
In both cases members apply for a loan and are jointly responsible for repayment to the local microfinance partner. More information can be found on our FAQs and our programme pages.