1. What are the criteria for receiving a loan?

Each woman must submit a loan application outlining her business plan and its benefits for her family and community. The applications with the most potential for success and positive community impact will be selected. Credit history and collateral are not required.

umama only extends loans to women. Research has shown that women are not only significantly more likely to repay their loans, but are also more likely to use the money they’ve earned to benefit their family and community. Enabling these women to handle their own finances is also a big step forward in empowerment and equality.

2. What kind of training is provided?

Financial literacy courses are offered to the women before the loans are disbursed to ensure that everyone understands how their loans will work. This is done in partnership with a local bank that also houses the funds of these women. After the courses, umama provides financial counseling throughout the year as well as annual workshops.

3. What interest rate do you charge?

The first round of loans carry an annual interest rate of 10%. After these loans have been repaid and the women have proved their credit-worthiness, they may reapply for a second round of loans with an annual interest rate of 5%. The third round carries an annual interest rate of 2.5%. The fourth and all future rounds carry no interest.

4. What happens if a woman defaults on her loan?

Before applying for a loan, the women must organize themselves into groups of 5. Each woman must individually apply for a loan, but in order to be a part of the program the whole group must be accepted. Throughout the term, if one woman defaults on her loan, no one in the group is eligible to be a part of the program in the future.

By encouraging the women to choose other credit-worthy women to be a part of their group, we are utilizing their knowledge of each other to avoid likely defaulters.

5. Are my donations tax-deductable?

Yes.  umama is a registered 501(c)(3) organization.

6. Is umama a faith based organization?

Yes. We operate under the mission that serving the poor glorifies God and reflects His Kingdom. We are motivated by His calling, as nothing is possible without Christ.

The King will reply, ‘Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.’ Matthew 25:40

I am the vine; you are the branches. If you remain in me and I in you, you will bear much fruit; apart from me you can do nothing. John 15:5

7. Are other services offered?

Yes. Savings accounts are opened for each of the women in the program through a local bank. At the end of the first and last loan term, umama will match 100% of their savings (plus interest) to encourage and reward saving habits.

Aside from financial services, we also offer a scholarship program. We cover 100% of the tuition of any official educational venture that directly benefits a woman’s current or future business plans. A strong community is also created at our community center, allowing the women to regularly meet to encourage each other while sharing ideas.

8. What does “umama” mean?

Umama is the Swahili word meaning “motherhood.”

9. Who can I contact with additional questions?

Any additional questions can be directed to info@umama.org.