PCWSDA Operations
As of April 2010, PCSWDA has provided 7,700 loans totaling $1.9 million (RMB 12.9 million). It now has 1,800 outstanding loans, covering 15 villages in the county. The repayment rate has been 100 percent since inception. The current interest rate is 10.8 percent (17 percent APR, with 4 quarterly installments).
Borrowers form groups of 5, and they counter-guarantee each other’s loans.
Loans start from $250 to $300 (RMB 1,700 to 2,000) with repayment in one year, and can increase incrementally up to $700 (RMB 5,000) after successful repayments. The average loan is now $350.
Businesses include: 61 percent agricultural production (e.g., cotton, fruit, vegetables), 21 percent raising livestock (e.g., chickens, pigs, sheep), and 18 percent value-added services (e.g., handicrafts, vending stalls)
98 percent of the borrowers are women with families to support.
PCWSDA has an experienced and highly-motivated staff of twelve who are willing to adopt sound international business practices. Excellent operational processes and procedures are already in place, including a detailed business plan and Operations Handbook. There has been no corruption.
Pucheng’s operations are efficient and accountable. All funds raised for the Program will go to the PCWSDA. The funds will be used primarily to make loans, but a small portion will also be used to improve the capabilities of the PCWSDA itself. Joint supervision and oversight by the sponsors ensure that PCWSDA activities are fully accountable.
