Our Model

To help participants pay for their bicycles, BAP developed a financing plan. We collect payments via mobile money once a month. 

Other model details include:

  • Total payment for the bicycle is $100.

  • Payment period of one year.

  • Payments cover full cost of bicycle, plus a small mark-up fee to cover operations.

  • There is a down payment of 15% before receiving the bicycle.

  • Even though it's an individual loan, participants pay back in village savings group.

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The selection process.

BAP has a loan appraisal form to ensure that participants can afford the bicycle loan. 

Here are the specific variables that we analyze in the process:

  • Group dynamic – individuals have to apply in an already existing community group (typically 20-30 people each). BAP analyzes how cohesive the group is, taking into account activity, attendance, and application of internal rules.

  • Health – including if the individual or a family member has a chronic illness.

  • Child to Adult Ratio – the ‘dependency’ ratio as we coin it. This indicates another level of need.

  • Household assets – income can be hard to measure, which is why we look at how much livestock people own or the number of mattresses, phones, tables, etc.

  • Borrowing history – if applicable. This becomes especially important if they currently have a loan out.

  • Character reference - one of the most important aspects of our loan appraisal is the individual character reference. We ask the savings group leaders about the individual's trustworthiness, reliability, and attitude.