The Micro credit approach by UGOOD is based on savings. Savings have become the turning wheel of the development concept. The small savings of the poor villagers are being mobilized and used for the purpose of generating productive income, collectively or individually as decided by them. The effect of savings can be expressed by a simple formula of acceleration:

Savings → Investment → Income → Self-employment → More Savings → More Investment → Larger Income and Self-employment → Development of Self-reliance

An individual with his/her small savings is very often reluctant to move further, because they do not find a good way out with their limited resources. It may bring big wonders if all these resources (savings) can be mobilized through organized efforts. Poor people, being illiterate and having no scope to organize themselves by some methods, feel themselves helpless. Here comes the need for organized efforts to motivate the people with limited resources (savings) to form cooperation. In most cases, the poor people have the good sense of fellow feeling, mutual trust and cooperation. If these qualities are exploited through organizational methods on the basis of Self-help, then these small savings of the poor people can easily create a strong environment of cooperation leading to a definite positive change in their Socio-economic life.

UGOOD builds human resources of its clientele through Trainings and Demonstrations; but without access to credit they can’t take any benefit out of these trainings. Collateral- free soft loans are provided to the beneficiaries for making productive investments. Target beneficiaries are also helped to find opportunities for making such investments, by preparing Project Proposals for them. 

Micro credit has become a global movement, affecting millions of people’s lives in more than 100 countries, with nearly seven million borrowers in Bangladesh alone. Lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Micro credit is one such means. It is important to realize the impact of micro credit on poverty. If a poor person is given one dollar, they start earning. But if nobody provides that dollar, their opportunities for lifting themselves out of the poverty are minimal. All human beings are entrepreneurs. We all have some inherent entrepreneurial and risk taking capabilities. Poor men and women are good about paying back their loans.
Micro credit promotes peace by decreasing inequality and injustice in the society. It brings economic justice to the world.

Presently, collateral free small loans, between the amounts of Rs. 20,000 and Rs. 30,000, are offered to individuals for the following purposes, during first phase, irrespective the amounts they have saved:
After successful completion of first phase, the amount of loans is increased according to the feasibility of the proposal and their performance on savings.
The Group Loans are provided to Groups and Associations (comprising 8 to 12 members) and amounts vary according to financial requirements, but not exceeding Rs.500, 000. 

Individual Loans
For Females:
    - For the purchase of set of sewing, embroidery and stitching machines 
    - For the purchase of young ready-to-conceive heifers 
    - For the purchase of a set of (5 to 8) lambs for fattening purpose on EID occasions
    - For setting small shops of special items of female use
Other options open For Males:
    - For the purchase of agro-inputs 
    - For the purchase of cattle
    - For the purchase of spare parts of farm machinery & tools
    - For setting small grocery shop
    - For setting a video game / computer repair shop     
    - Other options open
 
 Group Loans
-   For the establishment of Agro input Stores
-   For establishing Garments Manufacturing Unit
-   For establishing Green Houses for raising off-season vegetables
-   For the establishment of Milk Collection and Marketing business
-   Other options open   

Widows/disable Loans
Special soft loans other then micro-credit are offered to windows that deserve and can not afford their livelihood.

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) launched its flagship publication “Economic and Social Survey of Asia and the Pacific 2008 in more than 20 capitals in the region, and in New York and Geneva.
 

This year’s (2008) Survey, entitled “Sustaining Growth and Sharing Prosperity,” addresses the most important current issues facing the region / Pakistan. It says that 218 million – a third of the region’s poor, largely living in rural areas – could be lifted out of poverty by raising agricultural productivity if governments address decades of policy neglect and failure in the agricultural sector. The Survey also calls for a comprehensive liberalization of global trade in agriculture, as this would take a further 48 million people out of poverty in the region.

We here at UGOOD believe that this is only possible if the whole nation works together to achieve this goal. Pakistan has enough resources, and if they are managed in a proper way, we can alleviate poverty from our country.

UGOOD continues to help the poor through our Micro-credit schemes throughout the country.