Lend-A-Hand India
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Micro Enterprise Development (Bridge Loan)
  A survey of 400 IBT graduates indicated that approximately twenty percent wanted to start their own enterprises. However, they faced two main roadblocks: capital and experience. Given their low economic and social status, very few (if any) were able to access the financial resources needed, in spite of a number of government-sponsored programs promoting self-employment.

In keeping with Lend-A-Hand Indiaļ's vision of eliminating youth unemployment and creating viable alternatives to migration, the organization created a bridge loan fund, whose goal is to make capital and mentorship support available to young entrepreneurs as soon as they are ready to go out on their own. This is a way of encouraging candidates to concentrate fully on launching a business and getting started, sooner rather than later.

A bridge loan, covering capital costs and working capital for six months, is made available to the young entrepreneur after he or she has performed a feasibility study with the help of a mentor. The duration of the loan is one year with a rate of interest equivalent to the bank rate. As soon as the business is launched, the proposal is submitted to the mainstream banking system.

With the confidence, motivation, and experience gained from actually running a business, the young entrepreneur is now much better equipped to convince the bank of his or her creditworthiness. He or she can point, further, to the bank account they have opened in that same branch of the bank (as part of the application process). It is a concrete measure of success.
 

Proud graduates of of the Diploma in Basic Rural Technology supported by Lend A Hand India. Most, have secured jobs and internships in small and medium enterprises and intend starting their own enterprise soon.
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