Furuz 2
With a first loan from Furuz back in 2011, farmer Suhrob started cultivating vegetables and watermelons to sell them in surrounding villages. Over time, he managed to shift focus to lemons by investing in a greenhouse on his farm. Your investment in Furuz helps 50 other small entrepreneurs in Tajikistan to receive a loan, improving financial inclusion.
€200,000
7.50%
24 months
6 months
EUR
CurrencyAmount | €200,000 |
Interest | 7.50% |
Maturity | 24 months |
Repayments | 6 months |
Currency | EUR |
The project
Q: What does the higher interest rate of this project mean?
A: The project is part of a pilot program where we experiment with the conditions of projects. The higher interest rate is not due to a change in the credit rating, which remains a B. The increase in interest is not paid by the financial institution or the entrepreneur.
Please note: 1st principal repayment after 12 months instead of 6 months. However, the interest payments start after 6 months.
Since joining Furuz in 2011, farmer Suhrob has used microfinance loans to revolutionize his life and his family's. Starting with vegetables and watermelons, he changed his business into growing lemons in greenhouses, becoming a local expert. Suhrob's story highlights the power of loans: "With the loans, I was able to grow my businesses and start new ones. Now, my whole family works with me."
In addition to business development loans, Furuz offers a range of financial solutions, including agricultural support and consumer loans for education and healthcare. They are dedicated to empowering both business ventures and personal growth to contribute to positive economic change in Tajikistan. This way, your investment goes beyond encouraging the determination of entrepreneurs like Suhrob and the efforts of Furuz.
What social return could your investment make?
In Tajikistan, a critical shortage of local jobs has led many to seek employment overseas, posing significant economic and social challenges. This situation creates a pressing need for sustainable, local employment solutions to stabilise and grow the economy in Tajikistan.
Microfinance institution Furuz addresses this need by offering support to small entrepreneurs, particularly in rural areas. Their micro-loans enable these business owners, of whom 35% are women entrepreneurs, to grow their ventures and create local jobs. This focus on empowering women is crucial, as they often reinvest in their families and communities, amplifying the positive impact. Furuz's efforts demonstrate the powerful role of microfinance in stimulating economic growth and promoting gender equality in Tajikistan.
What financial return could your investment generate?
- Annual interest rate of 7,5%
- The maturity of the loan is 24 months
- Grace period: the first repayment of your investment will be made after 12 months. After that, there will be a repayment every 6 months
- With an investment of 1,000 euros, your expected repayment would be 1,113 euros
The story of Furuz
Furuz, founded in 1999, began as a micro-lending program and, with support from Millennium Relief and Development Services, transformed into a commercial entity in 2005. By 2022, it had grown into the Microcredit Deposit Organization “Furuz,” offering a range of financial services, including deposits and currency exchange.
Furuz is committed to Tajikistan's sustainable development, focusing on small businesses, financial inclusion, and gender equality. Having issued over 48,000 loans totaling $43 million USD, Furuz has significantly contributed to job creation and economic growth in the region, with an aim to expand and diversify its client base continually.
Furuz in numbers
- Founded in 1999
- Furuz employs 120 staff members across its 8 branches
- 6,000 active borrowers
- 65% of the borrowers are male, and 35% are female
- Issued over 48,000 loans totaling $43 million USD
Company name | Furuz |
CEO | Hans Joachim Jaeckle |
Founded | 2005-12-22 |
Location | Bokhtar |
Sector | Financial services |
Turnover | €240,787 |
Employees | 133 |
Credit score | B |
Impact
Tajikistan faces a significant employment challenge, with many of its citizens migrating for work. This migration impacts the country's economy heavily, as money sent back home makes up a large part of Tajikistan's GDP. Families moving abroad, including a growing number of female workers, intensify the employment issues within the country.
Microfinance institution Furuz addresses this by supporting financially underserved micro-entrepreneurs, particularly in rural Western Tajikistan. These regions rely mainly on agriculture and small businesses, where residents often can't get bank loans due to unproven incomes. Furuz offers small loans, from 300 TJS (EUR 26) to 250,000 TJS (EUR 20,800), targeting businesses with growth potential. This support is crucial for job creation, especially in small and medium-sized enterprises (SMEs) that are key for economic growth. Since 2019, Furuz has helped create over 6,000 jobs. They also focus on gender equality, with women making up 35% of their clients, and efforts to encourage more women to become economically active.
In partnership with the International Finance Corporation (IFC), Furuz also introduced a housing loan product using energy-efficient materials, reflecting their commitment to environmental sustainability.
With these initiatives, Furuz addresses employment issues and promotes inclusive and sustainable economic development in Tajikistan.
SDGs
With this project, you are contributing to the following Sustainable Development Goals:
SDG 1 No Poverty
SDG 5 Gender Equality
SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities
SDG 17 Partnerships for the Goals
Read more about the impact you can make through our platform and the SDGs on our impact page.
- With this investment 50 lives are improved