Valued partnerships and small loans – a solid foundation for ending poverty
No man is an island. More can be achieved when you join forces and work together. Opportunity International Australia partners with local microfinance institutions (MFIs) in India and Indonesia, investing in capital to provide small loans to their clients – with 95 per cent of these loans going to women.
A landmark study has proven for the third year in a row, that small loans received by women living in poverty in Asia are a practical and sustainable solution for financial independence.
The impact measurement company, 60 Decibels, surveyed 1,905 loan clients from five of Opportunity’s local partners in India and Indonesia earlier this year.
Of those surveyed, 91 per cent of microfinance clients reported increased income and 94 per cent improved quality of life as a result of their small loan.
Earning an income means big changes to quality of life
It’s not only income that has increased for loan clients living in poverty. With the help of microfinance, the family’s whole livelihoods have improved, with more children being sent to school and healthier meals being served at home.
Having access to banking and saving has also helped families become more resistant against any major unexpected expenses. Eighty-seven per cent of participants claimed that they are in a better position to manage their finances now, thanks to having a microfinance institution’s support.
Opportunity’s microfinance partners are outperforming the sector in reaching households typically excluded from financial services. Three out of five loan clients said they had no good alternative to their microfinance institution, compared to a global benchmark of 52 per cent.
For people living in poverty, microfinance institutions (MFIs) are a pathway for financial security. These families often live in rural and remote areas and do not have access to major banks, or the collateral required for a loan. The ability to access a small loan to start a business is life-changing.
Partnering with trusted microfinance organisations
A supporting recent survey of 147 of Opportunity’s local partners globally found that the MFIs we partner with have a very high satisfaction rate of 85 per cent in their engagement with Opportunity.
The Opportunity network engaged PIRON Global Development at the end of last year to survey our local partners globally across all program areas – including Microfinance, Health and Education – and report on how effective our partnership engagement is, how our partners relate to each other, and areas where we might improve how we support our partners.
The vast majority of partners – over 80 per cent – also consider Opportunity to be a key success factor for their organisation.
Partners shared that they particularly value Opportunity’s expertise, in technical assistance and capacity-building, our inspiring vision, client-centred approach and our organisational culture which is relationship-focused and shows high respect for partners.
At Opportunity, we in turn value our local partners, working on the ground for a sustainable solution to alleviating poverty. In a practical sense, we couldn’t do the work we do without them!
Suharni’s salted fish business exceeds expectations
Seafood businesses are booming along the coastal areas of Kolaka in Sulawesi, Indonesia. Mother-of-two Suharni saw an opportunity to launch a dried fish business to help provide for her family’s needs, and was willing to work hard, but lacked the capital to make her idea a reality.
Suharni met a loan officer in her community who was promoting the services of the Samaturu branch, and found the easy application process and loan repayment arrangements appealing. Suharni took out a small loan in April 2024 to launch her business making and selling salted fish and anchovies, and since then, her income and family's quality of life are improving.
Suharni buys fish from the fish market, soaks them in saltwater, and then sun dries the fish, which she sells at a local market. The fish are used in traditional Indonesian recipes. Less than 6 months in, through her dedication and the boost from a loan, Suharni’s business has exceeded expectations. Sales are booming and Suharni is already achieving an average monthly turnover of IDR 15,000,000 (AUD $1,440).
She has high hopes for her and her family’s future, her dreams feel within reach now. She hopes that her daughter Aidil (19) and her son Khairil (13) will be better off financially, and that her son can continue his studies and have brighter future. Suharni is grateful for the loan that helped to kick start her business, and she also wants to see others in her community benefit from the opportunities that come from a small loan.