In June 2002, Plan China started a pilot project of microfinance in Jia Xian County.  Women through financial access developed their household economy by increased household income and lifted themselves out of poverty gradually. In order to expand access of poor women to sustainable financial services for economic wellbeing, Plan China and Shaanxi Women’s Federation in 2005 registered a Microfinance Association in each five project counties and set the roadmap of transforming them into sustainable microfinance institutions. By June 2008, these 5 associations have disbursed US$ 3,080,391 through 12,522 loans to clients. The outstanding portfolio of the 5 associations is US$1,066,004 to 4,049 clients with more than 90% females. The current repayment rate is 100%. In the last 6 years, Plan China has donated a capital of US$ 997,998 to the 5 associations along with capacity building and technical support to the associations to prepare the ground for the associations’ sustainable development. 

With the help of Plan’s Micro-finance Association, many women have put an end to poverty. Moreover, they have got more respect from their family members, especially their husbands.  

The following two stories tell two ladies in Plan’s program area—Pu Cheng County, have benefited from Plan’s Micro-finance Association, improved their living standard, and received micro-enterprise awards of 4,000 Yuan from China Banking Association (Citigroup).  

Plan China village member receives micro-enterprise award 

I. Sun Xiaoli opened her own shop selling steamed bread.  

Sun Xiaoli, 39 years old, lives in Han Village of Chunlin Township in Pucheng of Shaanxi Province. In the past, she and her husband farmed land like their ancestors, and their income was not more than RMB 6000 Yuan (the equivalent of USD 876) per year. In addition, both her father-in–law and mother-in-law were very frail and often needed medicine, which made the whole family’s life more difficult. What was worse, with 2 children, their life and economic pressure became even heavier. Facing such difficult family conditions, Sun Xiaoli always tried her best to increase their income and improve their situation. In November 2002, with the help of her relatives, she opened a shop to sell steamed bread. Even though the business was very simple, it relieved the difficult situation a little bit for her family.  

II. With the help of micro-finance, she enlarged production.  

At first, the scale of the shop was very small and business was very simple, the family’s living room was the shop. Sun Xiaoli wanted to enlarge the production, but did not have the funds. Fortunately, in 2005, the micro-finance project of Plan China came to the village where Sun Xiaoli lives. She was very lucky to become one of the first borrowers. She got a loan of 1,000 Yuan to buy flour. Sun Xiaoli immediately enlarged the production scale through buying raw material. At the end of that year, she not only returned the loan on time, but also increased her income. From then on, Sun Xiaoli understood the advantages of micro-finance. In 2006, she borrowed 2,000 Yuan to enlarge her shop’s production again. This year, the couple earned nearly 20,000 Yuan and built a new house. Although Sun Xiaoli’s family condition was improved, she was not content with these changes. In 2007, she borrowed 3,000 Yuan to buy raw materials and further enlarge production.

In 2008, Sun Xiaoli borrowed a further 4,000 Yuan to buy a machine for making Shizi Mo (a traditional rural way of making Chinese bread, with eggs, spices, edible oil and many other materials) and set up Chen Shizi Mo Processing Factory. She employed local villagers as her staff. When Sun Xiaoli was first involved in processing Shizi Mo, she met many problems with the technology. In order to solve these problems and master the technology to produce safe, healthy and good products, Sun Xiaoli invited relevant technical professionals to train her and the staff.

Sun Xiaoli provided her customers with enthusiastic and good service: delivering goods to their doorsteps; guaranteeing the quality of the products; refunding money when customers were not satisfied with the goods. These services helped her win consumers’ approval and trust, thus stabilized the source of consumers and build a very good basis for further enlarging her sales range. Sun Xiaoli’s business grows better and better. Her family’s condition has changed greatly. She does not worry about her children’s tuition or medical expenses of her parents-in-law. Sun Xiaoli feels full of hope for her new life.  

III. Looking to the future, Sun Xiaoli is full of confidence and hope.  

With the help of Micro-finance, Sun Xiaoli is confident of her enterprising way. In the next 2 or 3 years, Sun Xiaoli plans to regularize her micro-enterprise and continues to enlarge her Chen Shizi Mo’ scale and influence. She wants to deliver Shizi Mo to each supermarket in our country.  

IV. After putting an end to poverty, Sun Xiaoli does not forget to repay society.  

Although Sun Xiaoli now has a rich life, she does not forget to repay society. When the new school building was built in her village, she donated 500 Yuan. After the 5.12 earthquakes, she immediately donated 500 Yuan to the disaster areas. Sun Xiaoli positively participates in different kinds of social public activities. She silently helps others by her own power.

In the busiest seasons, there were as many as 20 village women employed to help with the production, each with a personal income of 600 Yuan/ Month on average. These women were all proud of their work; the pay was not quite high indeed, but it made them realize that besides farm work, they have other abilities to make extra incomes, and to improve the situation of their families.

The micro-finance project of Plan China helped Sun Xiaoli put an end to poverty. Meanwhile, Sun Xiaoli receives a Micro-enterprising award from Bank of China Association for making effective use of micro-finance to become rich.

When talking about this, Sun Xiaoli gratefully said, “Micro-finance not only improves my life condition, but also helps me get a higher family status. I hope through the help of micro-finance, more and more women and families can put an end to poverty.”  

Plan China village woman raises pigs and wins a micro-enterprise award 

“At that time, our life was really very difficult…” 

Li Fengxia, 48 years old, lives in Yuexing Village of Chunlin Township in Pucheng County of Shaanxi Province. There are 6 people in her family, her parents-in-law, two children and her husband and herself Her parents-in-law have been very frail and sometimes ill. Fengxia and her husband depended solely on farming land to live, which could not support their family, let alone pay for the children’s tuition and the old parents’ medical expenses. Recalling the past, Li Fengxia exclaimed, “At that time, our life was really very difficult…”

“When I met difficulties with my life, it’s very fortunate to get help from Plan’s micro-finance project…” 

In order to try to put an end to poverty, several years ago, Li Fengxia and her husband began to raise pigs. However, as money was limited, they always raised pigs on a small scale. Therefore, the family’s difficult condition had not been changed much. In 2007, they bought 30 pigs, but because money was limited, they could not provide the pigs with enough feed. This made the couple worry about many things, such as children’s tuition, family’s expenses and so on. They did not know how to solve these problems, but then the micro-finance project of Plan China provided them with a loan. Li Fengxia borrowed 1,000 Yuan from the micro-finance project association to buy feed for the pigs. At the end of that year, Li Fengxia’s net income was 45,000 Yuan. She not only repaid the loan, but also accumulated money for next years’ cultivation plan. 

“I get more and more experience on raising pigs …” 

In 2008, Li Fengxia increased the number of pigs and bought them enough feed. She thought there would not be any problems this year. However, unexpectedly the feed mixture had something wrong with it so that it could not be fed to the pigs. Fengxia and her husband borrowed 2,000 Yuan more from the Plan supported credit association to buy feed. By the credit, they overcame their difficulty again. After that, the couple raised 50 pigs and classifying them by their sizes, they can sell the pigs at any time. So they looked after these pigs carefully.  

“The Plan supported credit association helps me develop my enterprise …”  

Li Fengxia’s family eventually became rich. However, she does not forget to repay her villagers. According to her recent years’ experience on raising pigs, she encouraged several other families to raise pigs together. She believes that with the help of the Plan credit association, they can overcome any difficulties and as long as they work hard, their lives will be better and better.

When talking about future plan, Li Fengxia confidently said, “In the next 2 years, I plan to raise 100 pigs. With the help of the association, I will not worry about anything, including money. I will be fully devoted to my cultivation.” 

In October 2008, Li Fengxia received a micro-enterprise award of 4,000 Yuan from China Banking Association (Citigroup).