Micro Lending

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A significant percentage of the population of Sri Lanka makes their living out on their own micro-enterprise initiatives in an environment where the informal economy is still very large. More often, these micro-entrepreneurs do not have access to formal financial services due to the informality of their enterprises as well as to the small scale of the business itself. Unfortunately, by having limited or no access to formal financial services, a significant percentage of the country’s population finds their potential growth and development highly limited. The CGAP report shows a high disparity between access to savings and access to credit/loans. The lack of access to working capital, and basic training on micro-enterprise development, hinders their ability to succeed and reach a better quality of life for themselves and their family, perpetuating the cycle of poverty. With this in mind, TREDZO DEVELOPMENT FOUNDATION was established in   2011 and became a National Organization in 1998. Currently, TREDZO has operations in the Western part of Sri Lanka focusing on the poverty-ridden areas with the objective of providing effective micro-lending services and training as a way to fight poverty and develop the local micro-economy. TREDZO loans have made a considerable impact on the lives of the poor and have helped a large number of people rise out of poverty. By working closely with the poorest communities and by offering low starter loan sizes, TREDZO ensures that it targets households living at or below the poverty line. The overall assessment of the program indicated that TREDZO clients increased their income and spent more on health and education after being with TREDZO, confirming that TREDZO interventions have generated a significant impact in the lives of their clients.