Written by anahit
Sunday, 27 April 2014

In 2014, Homeland Development Initiative Fund (HDIF) decided to create a Revolving Loan Fund (RLF), which will provide non-interest loans to small businesses operating in small communities. HDIF has a principle of not providing business grants because we truly believe that it may hurt the business thinking of the people in their educational process. Non-interest loans are considered to be the most efficient way to help businesses stabilize and develop. Due to many factors, the business  environment is not very friendly in Armenia, especially for small and medium enterprises. One factor affecting this environment are the high interest loans that are provided by different banks. Many of the small businesses that end up getting these loans lack the necessary skills needed to develop a successful business plan that will provide sustainable revenue, thus forcing many of the banks to collect high, often unaffordable, interest.  HDIF is committed in organizing trainings for its producers to increase their skills in conducting business, and, at the same time, provide small non-interest loans to promote “learning by doing”.

 

Main Goal: 

The main goal of the revolving loan fund is to promote business development in small communities, thus committing into local economic development of Armenia.