The Foundation provides financing to Small Scale Entrepreneurs through Social Micro- financing in a way that they find convenient and most enabling environment to thrive. The scheme is an integration of Islamic social and charity systems. We do not only provide capital, but facilitates support, information and expertise as well. The Foundation assists Small Scale Entrepreneurs by adopting a think tank approach and looking for synergies between the ideas and products being developed in order to grow their business ideas and enterprises faster. This approach fosters the growth of these new ideas and subsequently, the business allows the Small Scale Entrepreneurs to emerge in greater numbers and with far greater skill. Social Micro- financing is a financing scheme using Qard Hasan (Interest- free benevolent loan). It is no more secret that small businesses struggle with obtaining funds to expand and they rely on microfinance banks for help. If we look at the market today, there are only a few microfinance banks that are willing to lend to small scale entrepreneurs, because they see them as quite high risk customers and the capital they require are normally meager. The target group of this scheme is active poor entrepreneurs, defined as petty traders having less than N100,000:00 ($250) as capital or households having less than one dollar per day. The dominant mode of financing is Interest- free loan. The scheme explores the group- based format of micro- financing. Sum of amounts (ranging from N50,000 to N100,000) ($125 to $250) are given to individuals to repay back in one to two months.

TARGETED BENEFICIARIES

he main targeted beneficiaries are women who are active poor and they form majority of petty traders. According to the previous researches on microfinance, women are confirmed to be less defaulting unlike men. It is opined that this major targeted customer will be less defaulting. Before any finance can be granted, the Business Monitoring Team shall undertake a credit and risk analysis as well as due diligence on any financing request. Once an entrepreneur meets the benchmark, he/she can be financed up to a maximum of N100,000:00 and the maturity for the financing shall be one to two months.

1. MICRO- FINANCING

I-Crescent Relief Foundation extends Social Micro- financing to the active poor entrepreneurs and people living in poverty who are probably not considered bankable. These people lack the necessary collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to conventional credit. The financing is in form of benevolent loan and it is based on trust because there is no interest payment but the beneficiary may voluntarily give donation to the foundation when paying back the loan. I-CRF will depend on the third party guarantee and trustworthiness of the entrepreneur in term of paying back the loan at the maturity. The maturity for this finance is a maximum of two months.

2. BUSINESS SUPPORT

When Small Scale Entrepreneurs apply for finance, we work with them to ensure their businesses are investment-ready. We conduct a review of their businesses and assist them in assessing their business plans, outlining risks and opportunities. We assist the entrepreneurs with practical business solutions in petty trading, fashion designing, shoe/bag making etc. We also work with them to grow their network, develop their skills and gain business exposure.

3. ADVOCACY

We advocate Micro Entrepreneurship especially to the youths, unemployed and people with special needs. We try to inculcate in these potential active poor the rugged mentality and multiple dispositions required to be a successful entrepreneur. We do this through capacity building seminars and conferences. We also run regular workshops that impart practical, useful and relevant skills to those seeking to be Micro Entrepreneurs at our resource centers.

The foundation runs an Islamic investment and finance co-operative that is based on the principles of Islamic finance system for interested members of the public. The co-operative is established to create avenue for helping one another to achieve socio- economic goals. Members contributions to the co-operative are classified into two; shares and savings. All members are expected to have a certain minimum units of share before becoming financial members. They are also expected to save periodically for the raining days. Both shareholding and savings have different purposes. Please visit www.iccs.com.ng for more information.

MEMBER’S RESPONSIBILITY

MONTHLY SAVINGS

The monthly saving of a minimum of N1,000:00 per month by all members is to cultivate saving culture in members for raining days. The pool of funds from the members’ savings is the purse where Qard Hasan (Benevolent Loan) requests are drawn. A member can be granted an amount twice of his/her total savings as at the time of request. The shareholdings of the members serve as security for the loan granted provided it is sufficient and if it is not, other members can guarantee the beneficiary. All other existing policies on benevolent loan as stipulated in the byelaw are applied. A member can withdraw from his/her total savings but shall give a 1 months’ notice before the request can be granted.

ADDITIONAL ANNUAL SHAREHOLDING

The share capital of the Coop is raised through shareholdings of members. The minimum units of share a member must have with the Co-operative is twenty (20) units and must be increased yearly with additional 5 units. A unit of share is N5,000:00 and can be reviewed as operations and activities demanded by the Management. Annual dividends declared will be given to all members who hold the minimum units of share and the dividends shall be paid in proportion to the units of shareholding by individual members. The value of shareholding gives the members opportunity of seeking financing for personal project and business and it is also used as the first security for any facility granted to the member. This shareholding cannot be withdrawn by a member except the member wishes to quit the Society. A member that wishes to withdraw his shares shall follow the procedures as contained in the ICCS Byelaw.

One of the focuses of I-Crescent Relief Foundation is to take measures that would promote among the members, the spirit of brotherhood and self-help. One of the problems facing people today is how to finance their health challenges. Due to lack of money, little illnesses have taken the lives of many people which could have been treated in the hospital with little amount. It is on this premise that the foundation decided to establish for the interested members of the society a scheme tagged “Ta’awun Contributory Health Scheme” in which little amount is contributed monthly, quarterly or yearly as donation (Tabarru’) to the pool of the scheme. Health Insurance can be defined as a system of advance financing of health expenditure through contributions, premiums or donations paid into a common pool to pay for all or part of health services specified by a policy or plan. This is similar to the Community Health Insurance Scheme introduced by the Nigerian government but different in the mode of operations and principles. Ta’awun Contributory Health Scheme is a voluntary membership organization providing health care support to members. This scheme aims at increasing access to health care by reducing out-of-pocket payment made by members. It provides a viable option for those in need of financial assistance for health care. The scheme is run by a Management appointed by the Board of Trustee (BoT) of I-Crescent Relief Foundation. The contributions from the participants shall be put into a common fund, which will be used mutually to assist the members against specific and defined health challenges. The Management shall invest the surplus funds in the Social Business and any other permissible profitable businesses provided the fund will be always made available for any approved claims from the participants. The net profit from the investment may not be used to settle claims but part of it can be paid to all interested participants who do not receive any compensation during the accounting year as (hibah) gifts. The unclaimed amount shall be kept in a reserve.