Micro Credit Outlets (KhulaStart)

KhulaStart uses the group solidarity methodology (gives loans to groups - not individuals). Individuals select themselves into groups of 3 -10 members and need to meet the criteria established for group participation. Most importantly the group has to be a cohesive one The loans are disbursed on an incremental basis from R300 - R3 500 per member within a group. The group decides, based on the activity of the individual businesses, how much each member has to receive, and will subsequently stand surety for the full amount owed by the group as a whole. Where and who can establish a micro credit outlet? Micro Credit Outlets (MCO's) are established in rural and peri-rural areas where there is a need for micro credit to assist women, in particular; to start or expand their own small businesses. An MCO is initiated through existing Non-Governmental Organisations (NGO's) or Community Based Organisations (CBO's). They are established as a separate function of the existing NGO or CBO for micro credit facilities.