Reach Out gives small loans to HIV-positive people living in Uganda to begin small businesses.
For the last five years, the Ugandan, faith-based AIDS organization, Reach Out, has been offering small loans to HIV-positive people, in addition to its existing services of providing food and antiretroviral treatments.
Many HIV-positive people in Uganda are unable to obtain loans through more traditional and structured routes due to a lack of collateral and high interest rates. Reach Out offers these individuals small loans to begin businesses. To be eligible, individuals must be receiving treatment through Reach Out. When they apply for the loans, they must have a business proposal and receive business counselling.
There is a ten-percent interest rate charged on the loans. However, there are no late fees charged and applicants do not need collateral. When individuals successfully pay back their loans, they are eligible to apply for larger loans.
