Grandmother taking the goats she received from the credit scheme to feed




In the Pictures below: Grandmothers supported by the credit scheme are now able to start up small businesses in order to support themselves and the people they look after.

Granny Micro-Credit Scheme

Typically, elderly Ugandans, and grannies in particular, have faced discrimination from banks and other formal lending institutions when they apply for small business loans, because they are considered “credit risks.” PEFO grannies have, to help overcome this discrimination,organized themselves into 10 granny circles (SACCOS) of 40-120 members each. The purpose of these informal “village banks” is to give small business loans to members so they can improve their and their dependent’s livelihoods.


Grannies must become shareholders in a SACCO (5000 Ugandan shillings/share) to become members.Members are encouraged to save and contribute weekly to their SACCO. PEFO donors also make contributions to these granny banks. These three sources combine to create a fundwithin each SACCO from which small business loans are made to members.These loans must be paid back to the fund with 1%interest within 1 year.Dividends from each SACCO’sannual profits arealso distributed to its members each year.Each SACCO’sassets are kept secure short-term in PEFO’s granny circle office. Long-term, when assets reach required deposit amounts, they are kept secure in traditional banks.


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