Checklist when you give loan to poor people

There are increased number of donors these days. If you take the need gap reduction ratio, it still not yet have got reduced. Unless if it is not made to zero, need will always exist, it will multiply and leaves no impact for the donation made. Care should be taken while donating.

Let us take an example of a poor family that needs atleast 1000 bucks to fulfil their basic needs or atleast food. Let's say they earn just 600 bucks per month and get 400 bucks as loan for their survival. The interest for 400 bucks debt will grow day by day to kill them. If any donor want to help for these people, they should first understand how much they would able to earn per month. How much capital they need to earn the remaining amount? In this case, if they have seed amount of 10k bucks, they may earn another 1000bucks. So 1000 bucks for their survival and 600 bucks for the repayment. This capital seed amount is their need. If you give any amount as loan less than that amount is problem for them. They may put the insufficient funds for their survival only and cannot be able to multiply to get for their survival. The interest for the loan and survival cost would increase and create more burden on them.

Hence when you think to donate for any poor, don’t just put some money and go with a feeling that you have done something great. Just analyze what is their need to live a normal peaceful life. Whether can you able to contribute to the gap. If not spending small amount for many, spend for one’s life. If you are not able to contribute to their need, give your share and mentor them to get the balance. If you can raise through your friend’s network then that is great! But, ensure the needy people get all that they wanted to come out from the problem.