The basic idea behind this financing scheme is to enable the poor villagers to start their own self employed enterprises and thus be able to improve their standard of living.

This scheme proved very successful as it helps the poor to earn their livelihood with dignity and self-respect. The scheme was initiated in 2002 in Khanewal and Bannu with the collaboration of RDF Network partners. The progress made so far under this scheme is as follows:

• Yasir Development Foundation has loaned out Rs. 880,000/-
• Frontiers Reconstruction Agency (FARCA) has disbursed Rs. 975,700/-
• Al-Musttafa Welfare Association has loaned out Rs. 251,000/-
• Himaliyan Rural Support Programme has disbursed Rs. 200,000/-

The amount paid back by the people is again disbursed thus this fund acts as a revolving credit. The beneficiaries managed their own business and repaid their loans after earning profit. The success of this scheme is evidenced from the fact that majority of the loans were repaid. Now these people are running their own micro businesses and are feeding their family with its earning. RDF is now expanding its outreach to other areas.