Posts tagged ‘loans’

Rebuscándose in El Salvador. An obstacle race.

There is a famous song that defines Salvadoreans as people that eat everything, enjoy everything and do everything. I have checked these lyrics are right. There is a word usually used for referring to Salvadoreans, this is “rebuscados”. If someone is “rebuscado” it means he does the impossible to achieve what he needs: paying back a loan, help a relative or feed his family. As they say, they can even sell rocks to find a way to survive.

Like many countries in the American continent, poverty affects great part of the population and a job is extremely difficult to find. This is why many people decide to be entrepreneurs, because the only opportunities they find are the ones they create.

But even if they want to start a small business it is extremely difficult to do it. Most of the people don´t have enough money to begin and they have no access to banks. These institutions normally require having a job, presenting an electricity bill, having properties to set as guarantees, etc and the majority of these humble people do not satisfy these requirements. And even if they do, the high interest rates they have to pay makes the business unprofitable. The other day one woman told me she had a one-year loan with a well-known bank and she had to pay back the same amount of interests and capital. Crazy.

One more thing Salvadorean entrepreneurs face are maras, or also known in the USA as gangs. It is the cancer of El Salvador. They are groups of young people (10 years to 30) that control the areas where they live. They oblige businesses to pay a rent, arguing that they will protect them from other people. If they don’t pay the amount, they can end badly.

There are several options:

1. Paying the rent.

2. Not paying, close the business and move to another area.

3.Not paying and continue with the business. If they do this, there will probably be a death in their family.

And this is real live in El Salvador. Yesterday we were visiting a client that had one of the most successful businesses in “Puerto del Triunfo”. Gangs required her to pay a rent that was higher than the amount of the loan she received few months ago. She paid what she could (the same amount as the loan,1000$) , but this was not enough for the gangs. Her son started to receive serious threats to kill him. She had no option. She closed the business and moved to a different area. Now she and her family hardly live with a small pupusas business.

Not easy the life they have and the risks they face. But despite all these difficulties, they continue fighting for their families and dreaming in a better future. Thanks to organisations like Fundación Campo, Padecomsm and Apoyo Integral that collaborate with Kiva, they receive those opportunities they were looking for.

These are loans that change lives.

16 November 2012 at 07:35

Standing Out from the Crowd: How Kiva Partners Thrive in a Saturated Microcredit World

By Peter Soley | KF19 | Bolivia

Continue Reading 30 October 2012 at 06:00

Finding a Kiva lender through a SkyMall pillow

A chance encounter en route to Dakar, Senegal…

I have a strong tendency to read (ok fine, skim) blogs filled with photos. Aesthetically, it’s what I naturally gravitate toward, and I’m sure many readers out there likely do the same. Ironically, this post will defy this preference, as my camera has — unfortunately — found a new home.

It was important to remind myself when my camera went missing (as it is in so many other situations traveling or otherwise) that keeping an open mind and rolling with the punches is vital to staying sane. Had I not done so at the very start of my trip, I would certainly not have the following story, which I’m thrilled to share.

It didn’t start well, as I suppose encounters with strangers – especially on planes, in close quarters – often do not.  I “accidentally” placed myself in the seat to the left (…aisle!) of the one assigned to me. But this arrangement didn’t last long, as the man who was in fact assigned to the seat I was occupying would quickly and abruptly (for the first time, mind you) correct my error.  His method was not your standard gentle nudge, but rather an aggressive wave in my face of his ticket stub, backed up by two flight attendants urging me, “Please, ma’am, you must move.”  Of course I did so immediately, and apologized profusely for my error. The dispute was settled cordially; we gave one another a very forced smile and I carried on with my reading.

The silence lasted about 15 minutes, until our plane began its ascent and the same man to my left pulled out a clearly SkyMall-purchased green blow-up tray table pillow.  Admit it — you know what I’m talking about!  It’s that outrageously oversized item in SkyMall Magazine that, when you’re flipping through the pages, catches your eye and forces you to pause for a few seconds to contemplate:  “Seriously, who on earth would ever need or want this.”  (Photo below if you’re not familiar.)

The infamous SkyMall pillow ad

Well, I’d found my guy, and after 3 minutes of watching him work to inflate his pillow, I simply could not hold back my giggles. He of course noticed, and turned toward me with a glare of sorts.  That’s when our conversation began…

Mo (short for Mamadou) was born and raised on the outskirts of Dakar, Senegal. When he was 13, his family moved to the United States for his father’s work, and he’s lived there more or less ever since. Mo lives and works in Washington D.C., and takes an annual pilgrimage home to Dakar to visit family.   When Mo learned that I was Dakar-bound to work with Kiva, his enthusiasm for was effusive.  Not only was Mo familiar with Kiva, he’s a lender himself! (I should clarify: Mo is a Kiva lender through his niece, who first joined and started an account for “their family”).

Our destination, and Mo’s home country

To me, this was fascinating — an absolutely perfect brain to pick. Not only was I meeting a Kiva lender (awesome…), but moreover I was meeting a Kiva lender who makes loans to individuals and groups from his home country. I was curious to learn more.

Mo explained, unprompted, how powerful organizations like Kiva are: “Kiva successfully illuminates the issues and lives of those in my country for people around the world.” He went on to describe his firm belief in the power of loans. They are, in his mind, a method through which “his people” can escape from a culture of dependency (aid, corruption, trade, debt, etc.), into independence and self-sufficiency while retaining their cultural identities. He also emphasized how fundamental this is to their personal empowerment.

I listened carefully, but was somewhat perplexed. I know that Kiva is subject to the same biases and attacks made by all microfinance critics. It couldn’t possibly be that EVERYONE feels the way Mo feels.

Kiva, bringing people together, even on airplanes

(My questions were incessant. I apologized several times for this, but Mo insisted I continue. If I hesitated to give him time to breathe, he’d probe me with: “So… what else??”)

I asked what his opinion is of those in or from his county who may feel differently, perhaps averse to Kiva or microfinance, particularly when its facilitated through foreign entities. He explained that of course there are individuals who disapprove of the idea of Kiva and other microfinance organizations. But, if they think the obstacles facing their country and communities are surmountable without outside help, maybe it’s instead the idea – their mindset — that needs righting.

Mo had a cool and perspicacious way about him. He was truly pleasant to talk to — the sort of person you can tell is addressing you directly, not looking astray at distractions nor seeking approval or agreement. His speech is soft and unhurried, and as he explained to me, his love for travel comes from chance interactions just like this one. Being both snarky and sarcastic, I pointed to his SkyMall pillow – still inflated — and told him he had “that” to thank.

By the time morning dawned, we were halfway through our 9 hour voyage across the Atlantic, and my eyelids were drooping. That’s when our Kiva conversation ended.

What started off as a seemingly dreadful beginning to my journey ended up being a most memorable encounter for me. Silly purchases aside, I could not have imagined a better person to meet as I embarked on this journey. I have no doubt that the upcoming months will be filled with peaks and plateaus, and at times (as forewarned at our Kiva fellowship training) “troughs of disillusionment.”  My conversation with Mo, however, made me ever more hopeful that I find potential in micro-loans. At the very least, this interaction will undoubtedly make the inevitable frustrations ahead a bit more palatable.

*Mo:  If you’re reading this fellows blog (as I learned you often do) — what a delightful turn of events it was meeting you, and my most sincere thanks for allowing me to share this story. I’m investing in my own green SkyMall tray table pillow immediately upon my return to the States!

Anna Forsberg (KF19) is a Kiva Fellow working with UIMCEC in Dakar, Senegal. 

12 October 2012 at 10:33

Pakistan: A lizard in the hand is worth several in the bush

By Anya Raza | KF18 | Pakistan

My final Borrower Verification trip was to the village of Vehari, visiting Khursheed Bibi. We had attempted to meet her almost a week ago, but the morning of our appointment, her sister had unexpectedly passed away.

Leaving Lahore at 7 a.m., we encountered the first of our two hartals (demonstrations) of the day — tires ablaze, cars overturned and police nowhere in sight.

Protest in Lahore (Image courtesy of Dawn News)

The protest was against the massive electricity cuts, with protestors chanting,“You have forgotten the villages, you have forsaken the villages” and claims of electricity being out for days at a time because officials forgot to turn ‘the switch’ back on. No wonder.

An oil tanker was parked dangerously close to the massive flame, with the driver nonchalantly sitting and watching the spectacle. The ‘highly inflammable’ sign on the tanker’s flank didn’t seem to faze him in the least. I requested our driver to make haste, lest we be caught in the blaze.

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22 August 2012 at 08:00 5 comments

Sound Scenes from the Field

Meredith Pierce | KF18 | New Orleans

As I spend more time here in New Orleans — and as I get ready to depart — I have started to appreciate the daily sounds I take for granted. Just as important as the visual scenery, sounds can transport us to faraway locations.

In the past months, Kiva Fellows have shared video stories, insights on public transportation and accounts of our excursions into the field, but we’d like to invite you to experience our everyday lives through sound. Below are some clips that a few of us recorded in our various countries. Can you tell what they’re of or where they were recorded? Give us your best guess in the comments!

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11 August 2012 at 17:00 8 comments

Coming Home with Kiva Zip

By Marc Raifman | KF18 | New York

When I first met the other Kiva fellows, I asked them where they would be working. I heard Kenya, Peru, Indonesia, and many more places I someday hope to visit. I listened and began to share their excitement, worries and curiosities.

Then they asked me where I would be working on microfinance.

“Um, New York.”

Photo courtesy of Inhabitat

“Um, isn’t that where you’re from?”

Indeed it is. Unlike many of my more impressive colleagues, I came back to New York, with all the amenities to which I’m accustomed, to be a Kiva Fellow.

While I don’t have the opportunity to explore a different culture, I find myself on an exciting frontier of Kiva, an organization that is perpetually searching for inspired and practical solutions to financial problems. As my fellow fellows work to expand and strengthen Kiva around the world, I’m working on a pilot project known as Kiva Zip. The lending model we seek to create will facilitate direct peer-to-peer lending, continue expanding access to capital in the U.S. and abroad, and explore untested hypotheses about the nature of borrowing.

Oh, and did I mention that our loans are made at zero-interest?

The traditional Kiva model has already inspired a new understanding of the concept of lending. By connecting people around the country and around the world, Kiva has shown that small groups of individuals can play the role of banker for those whose success would not generate enough profit for larger banks to take an interest.

What Kiva accomplished for lenders, we now seek to accomplish for borrowers.

Since its creation in November, Kiva Zip has sought to prove that in the right context, small-scale borrowers can outperform the expectations placed upon them by traditional lending criteria. We do not believe that credit scores and cash flow projections are the only ways to predict success.

The context that matters here is the community. There is no doubt that one’s community affects his or her behavior. We believe that with the community, friends and family invested in the success of a business owner, no matter how small, their success and repayment rates will stabilize at a high level.

That is why at Zip we are testing due-diligence models that make use of community partners with an established relationship with the borrower. These community partners are known as trustees. We will encourage individuals to play multiple roles, as borrower, trustee, and lender, so the connections among them increase and their investment in one another’s success grows stronger.

We are seeking a broad spectrum of partners, including advocacy organizations, entrepreneurship classes, chambers of commerce, and religious institutions, as well as individuals who understand where there is need and opportunity.

Kiva Zip loans in the United States do not currently exceed $5,000, but as we provide this stepping stone to entrepreneurs in the States, as well as entrepreneurs in Kenya where Kiva Zip is also active, we will be searching for and finding solutions that will eventually contribute to more opportunity for all.

I encourage you, reader, to not just make a loan, but to think about where these ideas can create a positive impact in your communities, and let us know about it!

Marc Raifman is a Kiva Fellow, working in New York and Chicago this summer with Kiva Zip. If you would like to find out how you can get involved with this innovative program, you can reach him at Marc.Raifman@fellows.kiva.org. You can also find out how you can become a Kiva Fellow or find more information on Kiva and microfinance in general on kiva.org.

19 July 2012 at 08:00 3 comments

New Frontiers of Investing

Vikram Madan | KF18 | Indonesia

It’s been three weeks since I arrived in the bustling metropolis that is Jakarta, and I was very fortunate to have a wonderful introduction to Indonesia and Southeast Asia in general. During my first week, I attended the Wharton Global Alumni Forum in Jakarta. The Wharton Business School at the University of Pennsylvania is my Alma mater, and it happened to be a very exciting coincidence that the forum overlapped with my time here. I got to learn about the dynamism of the Indonesian economy as well as the newest forms of social investment – timely as I’m currently supporting a start-up social enterprise, PT Ruma, as part of my Kiva Fellowship.

Foto

Indonesia’s Vice President addressing the Forum

In a session titled “New Frontiers in Investing,” I heard about the newest innovations in socially-oriented investment. It was refreshing to see the fusion between profit motive and social impact, and despite the small size or early stage of these efforts, there is clearly a foundational momentum building around the double bottom line in finance. Specifically, I learned about socially-oriented private equity investors and the creation of a social investment exchange. (more…)

12 July 2012 at 17:00 1 comment

Doing Good in ‘Dougou

Diana Biggs | KF 18 | Burkina Faso

Last Friday, I had the opportunity to take part in «la Journée du Volontariat Français», an event at the French Institute of Ouagadougou which aims to promote the actions of French volunteers in Burkina Faso.  As I commended my French colleague for the generosity of his fellow French citizens, he explained to me that although the best translation I seem to be able to find for «Volontariat » is «Volunteer », it is not the same as volunteers who actually work for free, for whom the term « bénévoles » is used (Hello, Kiva Fellows!).

French Institute

Enter “la Journée du Volontariat Français”…

In its second iteration, the event attracted around 500 attendees: Authorities, volontariats, associations and NGOs. Despite its name, it wasn’t a day just for the French, but was also well attended by “Burkinabés” (the term for people from Burkina Faso) – and even one Canadian… (more…)

9 July 2012 at 09:15 1 comment

A Mexican Tale of Women and Sheep

Emmanuel M. von Arx | KF 16+17 | Mexico

Who would have thought that my second Kiva Fellowship would teach me just as much about microfinance as about the rearing of sheep? Seriously, ask me anything you want: How do you best hold a lamb? How do you wrestle with a grown-up mutton? How do you treat sheep for worms? Where and how often do you set them a vaccine? How do you determine a sheep’s age? Why does a sheep bite normally neither hurt nor bleed? For what reason does a sheep have four stomach compartments? And how do you compel a lamb’s reluctant mother to accept her kid after birth? I owe this knowledge to UNAM-educated veterinarian Linda Velázquez Rosas, who made a sheep-expert not just out of me, but also out of 200 amateur sheep-owners in and around the little town of San Felipe del Progreso, two hours west of Mexico City. This training was made possible by Vision Fund Mexico (also known as Fundación Realidad or FRAC), a Kiva field partner that excels both at financial and non-financial services (in a previous blog post I documented an artisan fair in Mexico City that was co-organized by FRAC).

Continue Reading 6 July 2012 at 08:00 6 comments

Bonne Arrivée: Welcome to Ouagadougou

By Diana Biggs | KF18 | Burkina Faso

One week ago today, I touched down in my new home of Ouagadougou, Burkina Faso. The greetings of “Bonne Arrivée!” I received at the airport are now echoed each morning as I arrive at my field partner’s office and each evening as I return home and  am greeted by my night guardian, Adama.

The road to work

A quieter street in Ouaga…

Continue Reading 3 July 2012 at 08:55 10 comments

Pakistan: In the heat of the moment

By Anya Raza | KF18 | Pakistan

Amid awkward applause upon our arrival to Pakistan, I abandon the safety of the aircraft thick with the aroma of curry to be welcomed into a city veiled by yet another blackout.

Despite my 2 a.m. arrival, I’m received with big smiles and a plate full of mouth-watering nihari, a local breakfast delicacy.

Pakistan, a country known for its blatant contradictions — political and cultural — is an exciting place to arrive as a Kiva Fellow.

Within just a few hours, the Pakistani public is taking to the streets, protesting the daily 18 hour power outages. Simultaneously, politicians debate in the permanently air-conditioned parliament whether a controversial ex-minister, also known as Raja Rental, should join the current president, Mr. Ten Percent, as the new Prime Minister.

Meanwhile, a Kiva Fellow moves into the heart of Pakistan, Lahore.

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28 June 2012 at 09:00 10 comments

Beyond Financial Services: Mexico’s Greatest Artisan Fair

Emmanuel M. von Arx | KF 16+17 | Mexico

Shortly after arriving at my first Mexican microfinance organization, FRAC (or Fundación Realidad, soon to be called Vision Fund Mexico), I had the joyful task of presenting in the name of Kiva two Social Performance Badges to its enthusiastic staff: one for Vision Fund Mexico’s strong and persistent focus on poor people, and one for the organization’s success in empowering families and communities. The description of the Family and Community Empowerment Badge on Kiva’s homepage immediately piqued my interest: it states that recipients of this badge “implement innovative business practices and offer services in addition to their financial products to meet the needs of the people they serve.” Innovative business practices and additional services beyond financial products? At FRAC? I began to ask members of FRAC’s staff and was soon pointed to some great examples of non-financial services that Vision Fund Mexico has provided in past months and year: they include support in product marketing and distribution given to beekeepers and artisan villages, over 380 free financial literary workshops for well over 4,000 borrowers, and free expert veterinarian training and medical services provided to hundreds of borrowers who are raising cows and sheep in their backyard. While I hope that some of these topics will be addressed by future guest blog posts of FRAC staff members (continuing the series that was started by Rosa’s gorgeous post on her recent field visit), I will report here on FRAC’s selfless contribution to Mexico’s largest artisan fair, the Expo FONAES. In many ways, this is just another example to David Gorgani’s great piece on the wide range of non-financial services that Kiva field partner organizations provide.

Continue Reading 22 June 2012 at 08:00 4 comments

Recycling for Life and Family in the Mexican Countryside

Emmanuel M. von Arx | KF 16+17 | Mexico

I have a confession to make: I love to browse Kiva borrower profiles – even occasionally without any actual intention to make a loan. I believe that reading the stories of borrowers from all over the world and knowing their dreams tells me more about a country and the mentality of its people than even the best of all travel guidebooks. And knowing some of the challenges they are facing in their lives and how they are surmounting them, being aware of the long hours they work every day and their dedication to their families – all this inspires me deeply and on a very personal level: if people can thrive under difficult circumstances thanks to incredibly hard work and a dream, then I should and will be able to do something meaningful and lasting with my own life as well! My Kiva lender profile reads: “I loan because… Kiva borrowers never cease to inspire me with their courage, talent, and dedication!”

That strong sense of inspiration that speaks to me out of every Kiva borrower’s history has been multiplied during my time in the field as a Kiva Fellow in the course of many personal meetings with borrowers. I have met literally dozens of borrowers who have left an indelible mark in my heart and mind. But recently I have met a borrower who is so extraordinary and unusual that even I – one of the more seasoned Kiva Fellows – was blown away. Her name is Ma de los Angeles and this blog entry tells the story of her work and her success.

Continue Reading 1 June 2012 at 08:00 6 comments

The Heart of Kiva – A Guest Blog from Mexico

Emmanuel M. von Arx | KF 16+17 | Mexico

Kiva is all about stories – what draws us all in and inspires us to lend are the stories of courageous micro-entrepreneurs that speak of hard-ship and success, challenges and dreams, love and dedication. But Kiva is not just about borrowers and their stories. It is also about the people behind the scene on the ground – the staff of the close to 150 field partners of Kiva – who screen loan applicants, grant, administrate, and look after Kiva loans, and make sure that Kiva borrowers are treated respectfully and fairly. Their stories are almost never told. Yet, the local staff of Kiva´s Field Partners are those people who make the magic happen – they are the ones who make Kiva possible. If Kiva Fellows are called the “eyes and ears in the field”, I propose local MFI staff be called “the brain and heart of Kiva.” MFI staff has insights on the conditions on the ground, the local mentalities, and the practical aspects of microfinance that can rival (and – I have no doubt – normally exceed) those of Kiva staff and Fellows. Yet, their perspective is seldom heard and their stories are rarely told.

Just how much local field partner staff have to tell and to share with the world I learned during the brief three week period during which I had the pleasure to be the Kiva Fellow for FRAC or Fundación Realidad (soon to be known as Vision Fund Mexico) in Mexico City. FRAC, has over 200 employees – they encompass 200 breathtaking stories and lives from all over Mexico, coming together in FRAC’s vision of wanting to provide financial and non-financial services to those families who do not have access to formal banking services in order to improve their quality of life.

During my work in FRAC’s Mexico City Headquarter, the MFI’s staff turned out to be an endless source of inspiration for me. There was not one person I talked to whose story and motives wouldn’t be worth sharing. Within a few brief hours I felt not just surrounded by close friends, but soul-mates – I discovered that everybody around me was at least as passionate and enthusiastic about FRAC’s and Kiva’s work and the impact of micro-finance as I am.

As soon as I told FRAC’s staff about the Kiva Fellows Blog, I was bombarded with requests of staff members to publish their thoughts and their experiences on it. Many have a particular pet project they feel most passionate about; others have made an experience on the job they are keen to share. Thus grew the idea of creating a little guest blog within the Kiva Fellow Blog. I offered to all staff to publish their thoughts and words on the Fellows’ blog as a way to make readers aware that Kiva doesn’t just connect lenders with borrowers, but that it connects lenders with local staff with borrowers with friends with staff with borrowers with lenders with… stop! Let’s just say: Kiva connects people through lending!

Rosa Gonzalez is the first staff member of FRAC who agreed to share her experience. She was hired by FRAC as their English-Spanish translator a few days after I joined the organization as a Kiva Fellow. Rosa translates both borrower profiles and journals for FRAC borrowers before they are being published or sent to lenders. But let me introduce Rosa in her own words – you will immediately see that they are pure poetry.

Continue Reading 24 April 2012 at 08:58 5 comments

Producto Creer: How for a Bank Doing the Right Thing Can Pay Off

By Emmanuel M. von Arx, KF16, Guayaquil (Ecuador)

My host and Kiva´s partner organization Banco D-MIRO provides over ten different types of microloans to borrowers in and around Guayaquil: among them loans to finance housing improvements, school expenses, medication, and loans awarded specifically to employees, young clients with a business idea but no experience, and – as Ecuador´s only microfinance institution – discount loans for HIV-positive micro-entrepreneurs. Yet, one borrower group beats all other borrowers in their dedication and commitment to paying back their loans on time: the well over 400 disabled borrowers of Banco D-MIRO, whose payment discipline has turned “their” loan – “Producto Creer” (“Product Believe”) – into the most successful and inspirational product of D-MIRO´s extensive spectrum. The delinquency rate of Producto Creer is by far lower than that of any other major micro-loan type of Banco D-MIRO, which means that borrowers of Producto Creer are better at paying back their monthly rates than any other client group! In these times of economic and social turmoil, Banco D-MIRO´s Producto Creer may be a much needed reminder that it may pay off for banks to do the morally right thing.

Continue Reading 20 December 2011 at 04:00 1 comment

A Typical Day in the Life of a Kiva Fellow: Loan Officer Training (Video Blog Post)

By Emmanuel M. von Arx, KF 16, Guayaquil (Ecuador)

Video posts on a “typical day” in the life of a Kiva Fellow are a time-honored tradition on the Fellows Blog. Without any more words, here is my contribution to the video series of documenting a typical day in the life of a Kiva fellow. Like all previous contributors to the series, I am keenly aware that there is no “typical day” for Kiva Fellows. But taken together, the growing number of “typical day”-videos may at least convey something of the diversity, unpredictability, spontaneity, and joy that a typical untypical day of a Kiva Fellowship entails. Enjoy!

Continue Reading 6 December 2011 at 04:00 3 comments

Village Banks BY Farmers FOR Farmers: A Microcredit Labor of Love

Oxen hauling coffee harvests in La Sierra, Platanares, Costa Rica.

 By Julie Kerr, KF16, Costa Rica 
Part 2:  Microfinance Models in Costa Rica – Featuring FUDECOSUR
 
(See Part 1 for details on how FUDECOSUR’s village banking model works)
 

The warm red earth pulls me in, as I follow FUDECOSUR loan officers on their labor of love.

Serpentine paths lead us through farm lands carved out of dense swaths of jungle, as borrowers take us to the plots of land they proudly cultivate, thanks to the help of Kiva lenders.

As I slip and surf along steep paths slick and thick with monsoon rain, sprawling ferns the size of a family hut, reach out to us, with unfurled leaves heavy with the same mist that envelopes us.

Majestic white oxen haul mighty harvests out of the valley depths, where machines dare not tread, due to thick, quicksand clay mud, which all too lovingly pulls all things passing, toward the womb of the world. We move to the side of the path, making way for the heaving beasts of burden, as they pull weighty sacks of coffee beans and other food crops, in brightly painted “carretas” (wooden carts with wooden wheels).

Continuing along our trek, we descend into a warm, moist Eden of lush green, where water-collecting trees grow taller and stronger as we approach the river.

“Welcome to La Sierra! Here we take care of nature!” – Village welcome sign in La Sierra, Platanares, Costa Rica.

Unlike farms I’m used to seeing in the United States, Costa Rican farms boast fields of crops coexisting with an abundance of medicinal plants and native trees, which are protected by law.

True to Costa Rica’s conservationist spirit, owning land means that one is charged with protecting existing plant species essential to long term survival, while cultivating crops essential to immediate survival.

Cutting down old-growth, or endangered trees, or trees which sprout, stretch and rise along rivers, is strictly punished by hefty fines and jail time. These rules apply even if one destroys any such tree on land one owns.

The result?  Farming in Costa Rica is no longer synonymous with deforestation. Because of the great care that has been taken to preserve the environment, Costa Rica has become a Mecca for biologists and laymen lovers of wildlife. The nation boasts the largest percentage of protected land in the world (25%, compared to the developing world average of 13%, and the developed world average of 8%). While making up only 0.25% of the earth’s land mass, Costa Rica is home to 5% of the world’s biodiversity. And though such animals are nearly extinct in neighboring countries, large jungle cats, a variety of monkeys, reptiles and amphibians, and an abundance of bird species and marine turtles, survive and thrive in the ecologically rich coast that is Costa Rica.

Oxen hauling farmer and son to coffee fields - La Sierra, Platanares, Costa Rica.

Protected land swells and wells with sweet, crystalline springs, rolling rivers, tumbling white waterfalls, lakes, mangrove swamps and marine estuaries brimming with life.

Due to a deep respect for the earth, exceptionally clean water and fresh air blanket the country, and are a great source of pride for Costa Ricans.

Those who work the land are especially proud of it, and in the eyes and smiles of Kiva borrowers and FUDECOSUR loan officers, beams a joy and passion that comes from living a labor of love.

In The Fields:  Loan Officers Serving as Agricultural Development Partners

Not only are FUDECOSUR  village banks run by village farmers, as detailed in Bank-O-Mat Under a Hot Tin Roof, but they are also trained and managed by loan officers who are farmers themselves.

As FUDECOSUR  seeks to assist and develop agricultural communities by becoming an integral part of each community, FUDECOSUR’s loan officers provide much more than a mere financial services relationship. Since loan officers Geiner Gonzáles Marín, Gerardo Barrantes and Danny Zuñiga all come from farms themselves, they also serve as valued partners, advisors and mentors, not only from a bank operations training and guidance perspective, but also with regards to helping clients optimize crop and livestock output.

Geiner Gonzáles Marín: Chief Loan Officer

Geiner Gonzáles Marín entering a coffee farm in La Sierra, Platanares, Costa Rica.

When visiting borrowers and the lands they cultivate, Chief Loan Officer Geiner Gonzáles Marín, often leads the trek into plunging valleys or up steep mountains, with unceasing enthusiasm.

Born and bred on a coffee plantation with dairy cows and various food crops, Geiner is in his element and is unstoppable –copious rain or shine.

With an absolute passion for the land and the fruits of farmers’ labor, his camera is always in hand, snapping photos of crops grown with Kiva loans. He also interviews the farmers with great interest, inquiring about crop cultivation challenges (such as destructive wilting or fungus caused by excessive rain), and offers vital suggestions on how to combat various crop infirmities and increase crop yields.

Gerardo Barrantes: Loan Officer 2

Gerardo Barrantes with the largest of his giant Ayote harvest, measuring 67cm long, and weighing 17 kilos – San Rafael Norte, Costa Rica

Sharing the same intense passion for the land, loan officer Gerardo Barrantes shows off photos of gigantic yucca and ayote crops he’s produced organically. Clients are wowed by the 37-pound mega-vegetable Gerardo proudly cradles like a newborn child.

While eagerly inspecting and praising crops produced by Kiva borrowers, he offers guidance on stronger, more rain-resistant produce likely to benefit from organic farming methods.

Gerardo’s love of the land is also reflected in his paintings. One features his childhood home – an evergreen dairy farm, fed by fresh spring water, cascading from the mountains shadowing his boyhood village. Gerardo’s artisan talents are also used to turn “carretas” (ox-drawn wooden carts) into rolling works of art, for the proud farmers in and around his village.

Danny Zuñiga: Loan Officer 3

Danny Zuñiga (far right) with his proud parents in the family sugar cane fields - Pilar, Costa Rica.

Like his counterparts, loan officer Danny Zuñiga has always had a deep desire to remain close to the land, and the people who tend it.

As a small child, Danny’s mom jokes that it was hard to get him excited about school, since he preferred spending time with dad in the family sugar cane fields.

True to his passion, Danny enrolled in an agriculture-based vocational school program. From grades 7-12, Danny bussed his way to Colegio Tecnico Profesional de Platanares, which has a working coffee farm, and livestock farm full of cows, pastures, pigs and rabbits. Just like his colleagues, Danny’s favorite part of the job is being out of the main office, and in the field with borrowers. As such, Danny is especially proud to help serve client needs with his agronomy training, both in theory and in practice.

In addition to informal cultivation guidance provided by loan officers, FUDECOSUR borrowers also benefit from community and business development courses funded by FUDECOSUR profits.  Free technical training and education are provided to increase crop and cattle yields, improve community health and sanitation, and expand alternative job opportunities. Course themes are requested by the Village Banks, and are coordinated by the FUDECOSUR director and loan officers – who source experts in each field of training (such as technical college agronomists for crop cultivation or livestock care courses, or information technology instructors for computer training courses). Village bank communities in need have benefitted from detailed courses combining theory and practice, such as:

  • Livestock Health Care and Output Optimization
  • Coffee Cultivation and Output Optimization
  • Hydroponic Farming Capacitation (to optimize more environmentally-friendly, and disease-free farming)
  • Food Handling and Sanitation (to improve community health and support start-up food service businesses)
  • Computer Training (MS Office for children and adults)
  • Sewing/Clothes Making
  • Community Recycling
  • Water Purification

FUDECOSUR provides these free courses not only as a form of long term community development, but also believes that such courses are responsible for client loyalty and very low default rates (2% reported for 2010). The more involved FUDECOSUR is in the village bank communities, the greater affinity clients feel for FUDECOSUR as a member of their community, and the more willing and able clients are to repay loans (per FUDECOSUR’s philosophy).

Furthermore, borrowers who are taught methods to improve production, make stronger clients and business partners in the future, since they’ll eventually have more income resources.

In The Village Banks:  Loan Officers Serving as Financial Operations Partners

Working “carreta” painted by FUDECOSUR Loan Officer Gerardo Barrantes.

Beyond working to provide agricultural communities with formal and informal business development guidance, FUDECOSUR loan officers also train farmers to run village banks, which operate in the communities where farmers reside.

With dedicated mentoring and guidance from loan officers, FUDECOSUR’s Village Banks (also known as Credit Committees) are run by 5-7 dedicated volunteers, who are elected every 2 years by members of their community.  Partnering with FUDECOSUR’s loan officers, Credit Committees are responsible for assessing and approving loan requests, disbursing loans to borrowers, collecting loan payments, documenting all credit requests and exchanges, and monitoring borrower progress. Credit Committees are also charged with educating their community members on FUDECOSUR rules and requirements for soliciting, receiving and repaying loans.

Geiner Gonzáles Marín (right) inspecting and gathering coffee beans for Kiva borrower Rigoberto Garro Godinez - La Sierra, Platanares.

Given their intimate knowledge of the land, FUDECOSUR  loan officers are deeply respected and revered by clients as fellow farmers, who bring much-needed credit funds and education to underserved communities.

“Geiner is one of US!”  Village bank members of Cedral de Cajón exclaim (referring to the Chief Loan Officer).

Since agricultural communities are commonly excluded from traditional financial services, the introduction of FUDECOSUR funds and training has given clients a renewed sense of hope, pride, and excitement.

Many FUDECOSUR clients recant tales of suffering through intimidating, confusing and lengthy application processes for traditional bank loans.

After losing money to travel costs, and crops left unattended for multiple visits to national banks, farmers are often left disheartened by rejection at the end of the process.

After struggling unsuccessfully for years to obtain national bank loans to support his farm, Antonio Vargas Hernandez, is now Vice President of FUDECOSUR’s village bank in Cedral de Cajón.

“After being rejected for loans with national banks time after time, I never imagined I’d actually be running a bank!” Antonio is radiant with warm pride and enthusiasm. “I’m so proud to be able to help my community move forward with affordable loans that can be obtained right here!”

Geiner Gonzáles Marín descending into the valley of La Sierra, Platanares to reach a Kiva borrower’s coffee farm.

The complexity of the national bank loan process, plus the constant rejection of farmer applications, made many farmers feel inadequate and incompetent when seeking credit.  In contrast, FUDECOSUR has taught clients that they are not only valued borrowers – they are also essential, competent and capable financial services partners.

As farmers with intimate knowledge of the land, and personal experience with members of their community, Credit Committees are well-suited to decide which business proposals are most apt to thrive from a micro-loan.  If an unprofitable business proposal is presented (such as planting crops in areas not conducive to successful crop production), the hands-on farming expertise of Credit Committees is leveraged, to help prospective borrowers come up with alternative proposals, which will generate positive growth, and help borrowers thrive.

Because of FUDECOSUR’s inclusive village banking model, farmers who formerly perceived themselves as financially illiterate, have become highly functional village bank operators who now beam with confidence.

“Loan officers like Geiner make us better people” says Arrelio Arías Brellas – President of FUDECOSUR’s village bank in Cedral de Cajón.  They’ve made credit processes easy to understand, and loans fast and easy to obtain. Because of their time and dedication, we are now equipped to help our community improve their businesses, and make life easier.”

Miguel Mora Vargas, Treasurer of Cedral de Cajon’s village bank, explains how loan officers lead by example, and are a great source of inspiration for village bank officers, who are also borrowers themselves.

“Geiner’s hard work makes us want to work harder every day to help our community succeed. Loan officers like Geiner are always punctual, and they stay after hours to ensure all credit exchange tasks are understood and complete. Their knowledge and expertise becomes our knowledge and expertise, and we learn more every day. Our community is stronger because of FUDECOSUR.”

Thumbs-up and smiles from a proud coffee farmer - La Sierra, Platanares, Costa Rica.

As village bank operators express their gratitude for FUDECOSUR’s inclusive and educational community development model, monsoon rains often thunder down outside, making a mighty rap-a-tap-tap chorus of sound, which mimics roaring applause.

Cedral de Cajón is just one of many communities expressing deep thanks for FUDECOSUR credit services, and the Kiva loans that help make them possible.

Time and again, I have the pleasure of seeing borrower hardships converted into eventual successes through Kiva loans, and I redefine the concept of wealth every time.

Most FUDECOSUR borrowers, due to their isolated location, have never had a relationship with a national bank, and therefore, don’t even have savings accounts. They are subsistence farmers who don’t become financially rich with Kiva loans, but who are able to maintain crops and cattle for more consistent production, or grow their businesses when weather and market conditions are optimal.

With each new loan received (after years of exclusion from traditional financial services), FUDECOSUR borrowers feel that their work is valued and more important than ever. With each successful harvest supported by Kiva loans, farmers stand taller. Single mothers raising pigs which give birth to litters of 6, or chickens producing piles of healthy eggs, radiate with a newfound belief in themselves as capable and successful providers for their children. Sons producing more abundant coffee beans or corn with nutrient-rich fertilizers, beam with pride, as they are able to care for aging parents, and feel confident about supporting a future family of their own.

What price tag can you place on the renewed sense of life, optimism, enthusiasm and excitement that comes from feeling valued, confident, competent, capable and hopeful?

The value, in my humble opinion, is priceless.

And though life is not easy for these hardworking borrowers, they are growing wealthy in many ways human beings should be, thanks very much in part, to generous Kiva lenders.

Past Blogs:

Upcoming Blogs:

  • Kiva Borrower Stories and Thanks from The Field
  • Jungle Journals – Adventures in the Wilds of Región Brunca

How YOU Can Help:

  • Lend to a Kiva entrepreneur today!
  • Apply for the Kiva Fellows Program!
  • Join the FUDECOSUR lending team!

Julie Kerr is Kiva Fellow serving in San Isidro, Costa Rica. She currently supports FUDECOSUR (Foundation for the Development of Southern Communities).  FUDECOSUR is a non-profit microcredit provider, dedicated to empowering Southern Costa Rica’s disenfranchised agricultural sector.

18 November 2011 at 12:06 4 comments

Visiting an HIV-Clinic in Guayaquil (Part II)

By Emmanuel M. von Arx, KF16, Guayaquil (Ecuador)

One of the great joys and privileges of being a Kiva Fellow is to go along with loan officers when they are meeting Kiva borrowers and new clients. One of my most memorable outings was a visit of an HIV-clinic in a public hospital in Ecuador´s largest city Guayaquil. In the first part of this blog post I recounted how I drove with Nahin Alvarado from Banco D-MIRO´s headquarters on Guayaquil´s Isla Trinitaria to the HIV-clinic at Hospital Abel Gilbert. Nahin is the bank´s loan officer specializing in HIV-positive and/or disabled clients who have the right to receive a discount micro-loan. And Banco D-MIRO is the only micro-institution in all Ecuador to provide financial products especially for these two long-excluded client groups.

Nahin is talking to a patient outside of Guayaquil´s HIV clinic

While Nahin is presenting the bank´s special loan products to the patients in the HIV- clinic´s crowded waiting room, Franklin walks towards me. A strong man in his forties, Franklin is the leader and community organizer of FUSAD (Frente Unido por la Salud y los Derechos – in English: United Front for Health and Rights), a self-help and support group for HIV-positive people, based at the hospital and well known for the professional education courses they provide to their members.

Continue Reading 15 November 2011 at 12:00 4 comments

Visiting an HIV-Clinic in Guayaquil (Part I)

By Emmanuel M. von Arx, KF16, Ecuador

“Don’t be scared to shake the hand of a client with HIV or to drink out of his glass. You cannot get infected that way.” This was the message that Nahin Alvarado repeated over and over during a training session in September with a group of twelve new and somewhat incredulous loan officers of Banco D-MIRO, when I first met him. A loan officer himself, Nahin has been with Banco D-MIRO for over two years, focusing on two very special client groups who – not just in Ecuador – have long suffered from discrimination and lack of access to financial services: micro-entrepreneurs who are HIV-positive or disabled. The moment I heard Nahin so forcefully speak up on behalf of HIV-positive clients, I knew that I wanted to spend a day with him in the field.

Continue Reading 2 November 2011 at 08:00 3 comments

What´s Easier Than Getting Robbed in Guayaquil?

By Emmanuel M. von Arx, KF 16, Ecuador

As much a therapy session as a blog entry, this is the narrative of a recent robbery incident in Guayaquil: It happened two hours ago and my co-workers and I can still feel the shock in our bones. This day had begun like a normal day: At 7.30am Rubi Chaca – the Kiva Coordinator of Banco D-MIRO -, her 16-year old intern Joel Kenny Matias, and I had met outside of the bank´s headquarters, where we were picked up by Roberto, the official driver of the bank. He drove us to the branch office of Guasmo where we gave a training session to the local loan officers, reminding them about Kiva and explaining to them why it is so important that they keep finding micro-entrepreneurs who agree to be listed with their name and photo on Kiva´s website.

Continue Reading 18 October 2011 at 16:00 9 comments

Bank-O-Mat Under a Hot Tin Roof: Making Non-Profit Microfinance Sustainable

One of FUDECOSUR’s 45 Village Banks - Pueblo Nuevo, Región Brunca, Costa Rica

By Julie Kerr, KF16, Costa Rica
Part 1:  Microfinance Models in Costa Rica – Featuring FUDECOSUR
 
(Check out Part 2 for more adventures in FUDECSOUR village banking)
 

Bump-duh-duh-thump-thump, Bump-duh-duh-thump-thump, Bump-duh-duh-thump-thump WHUMP!!!

So goes the rockin’ and rollin’ commute to remote villages along dirt roads – speckled with basketball-sized boulders, and craters large enough to swallow a small man (that’s where the “WHUMP!” comes in).

Maneuvering these roads with a grin and gusto are FUDECOSUR’s dedicated loan officers:  Geiner Gonzáles Marín, Gerardo Barrantes and Danny Zuñiga. Our destination for each turbulent trip is one of FUDECOSUR’s 45 village banks – which provide the only source of much-needed credit most clients have ever had.  THANK YOU to all Kiva lenders who help make this possible!

As we zig-zag along winding roads trying to avoid the mammoth “WHUMPS!”, we run into traffic. Blocking our path is a fearless bull unspooked by our roaring engine. He stares us down as if to say: “This is my road, buddy, and I refuse to moooooove”.  As we inch forward, gently nudging his bum with the bumper, he finally decides to amble on.  Then our ascent is blocked by a bulldozer shoveling landslide debris off of the road.

While we wait, I savor the warm sounds of humming insects, and whispering laughter from palm leaves rustling in the wind. I take in the views of lush, green valleys and farmland terraced along the hills and rising mountains.  Coexisting with carefully planned crops of fire red coffee beans, sugar cane, corn, and legumes, are patches of wild, unclaimed land full of sweet lemon trees (yes – the lemons here are sweet), bright fuchsia bananas (which are mostly eaten by the birds) and miniature yellow bananas (which humans find sweet and delicious). Wild avocado and coconut trees can also be found, and like the sweet lemons and baby bananas, they are free to those who wish to indulge. Have I landed in Heaven??

Our vehicle lunges forward, and I’m whisked out of my glassy-eyed daydream of staying here forever. We pass pristine waterfalls tumbling down the mountain, across the road, and down into whitewater rivers which snake through the valley below.  Aaah… slipping back into my daydream again… I’ve grown so accustomed to the rhythm of the roads that the “Bump-duh-duh-thump-thump” now serves as my lullaby.

WHUMP!  We arrive at the village bank.

Perched on a verdant plot of land amidst pastures of feeding cattle, or rising food crops stretching  toward the sun, are many of FUDECOSUR’s village banks. Some village banks are simple one-room structures with a burning tin roof shading us from the elements.  Other village banks operate out of a farmhouse kitchen or living room.  All village banks are a part of FUDECOSUR’s mission to bring financial support to the doorsteps of disenfranchised populations.

Due to the isolated nature of the farming communities we visit, most residents have never had a savings account. The absence of national banks in these remote areas has excluded much of the agricultural sector from financial savings and borrowing opportunities.  In order to qualify for a loan, national banks often require costly cash deposits – which most farmers can’t pay, since they rarely have savings accounts. Without access to savings accounts, farmers often purchase a pig or a cow with remaining cash.  These animals serve as the farmers’ insurance plan, and are sold when large sums of money are needed for emergencies (such as unexpected medical expenses).  While farmers are able to subsist without access to credit, it is extremely difficult, at best, to increase living standards or to recover from natural disasters (such as floods or blight) or major health emergencies.

Filling this vast credit void is FUDECOSUR  (Foundation for the Development of Southern Communities)  –  A non-profit microcredit provider, dedicated to empowering Southern Costa Rica’s agricultural sector.

Besides providing loans for expansion of crops and livestock, FUDECOSUR also provides Family Well-Being loans, which cover medical, educational and home renovation expenses.  Such loan diversification ensures that struggling farmers are not forced to sacrifice one essential need (such as money to purchase seed and fertilizer) for another (such as money to pay for life-saving medical treatment).

To facilitate easy repayment based on agricultural development and sales cycles, FUDECOSUR offers loan terms of up to 3 years, with annual rather than monthly principal repayment terms. Loan terms are also restructured to help borrowers overcome crop and cattle losses from natural disasters (such as floods and blight), and financial losses due to health emergencies.

To ensure credit services are easily accessible, affordable and sustainable, FUDECOSUR literally brings banks to remote villages in need. Leveraging dedicated volunteer networks, existing social infrastructure and building facilities, FUDECOSUR maintains low operational and servicing costs, and minimal environmental impact, while building community cohesion, and opportunities for community members to thrive.

How The Village Banks Operate:  Volunteer Power!

Village Bank operations in action: Santa Elena, Región Brunca, Costa Rica. Tables to the left serve clients repaying interest, while tables to the right serve clients soliciting or receiving money for new loans.

FUDECOSUR’s Village Banks (also known as Credit Committees) are run by 5-7 dedicated volunteers, who are elected every 2 years by members of their community.  Partnering with FUDECOSUR’s loan officers, Credit Committees are responsible for disbursing loans to borrowers and collecting loan payments.

As farmers with intimate knowledge of the land, and personal experience with members of their community, Credit Committees are also charged with deciding which business proposals are most apt to thrive from a micro-loan.  If an unprofitable business proposal is presented (such as planting crops in areas not conducive to successful crop production), the hands-on farming expertise of Credit Committees is leveraged, to help prospective borrowers come up with alternative proposals, which will generate positive growth, and help borrowers thrive.

Where The Village Banks Operate:  Mi Casa Es Tu Casa!

Village Bank in Cedral de Cajón, Región Brunca, Costa Rica

To ensure zero resources are spent on office construction, rent or maintenance, Village Banks operate out of existing community structures, such as a tin-roofed central market shelter, or the homes of Village Bank (Credit Committee) members.

And, since Village Banks operate in villages where borrowers reside, clients avoid costly money and time expenditures, required for travel to distant towns or cities (where national banks reside).  In short, the proximity of the village banks to clients ensures unprecedentedly easy and consistent access to credit services.

When The Village Banks Operate:  After The Cows Come Home!

Kiva borrower traversing the farmland he works: Administración, Región Brunca, Costa Rica

To accommodate the demanding work schedules of agricultural borrowers, Village Banks meet every 2 weeks, on recurring set dates (i.e.: every first and third Tuesday of each month). Bank meeting times start in the late afternoon (2pm, 3pm or 4pm) to allow borrowers to meet essential crop cultivation and livestock care demands. As such, borrowers are able to access credit services without sacrificing critical production tasks and wages.

At each meeting, debt principal and interest payments for existing loans are collected, while money for new loans is solicited and disbursed.

Homeward Bound:

Road to Cedral de Cajón, Región Brunca, Costa Rica

After the 3-4 hour bank meeting ends, we bid warm farewells, with new loan profiles and hopes for better futures in hand (thanks to the generosity of Kiva lenders).

By the time the loan officer and I reach home (FUDECOSUR headquarters in San Isidro), a 10-13 hour day will have passed.

Once I reach my cozy, tin-roofed apartment, echoes of “Bump-duh-duh-thump-thump WHUMP!!!” serenades will lull me to sleep, and ring out again at the start of my next adventure.

Other Blogs:

Upcoming Blogs:

  •  Jungle Journals – Adventures in the Wilds of Región Brunca
  •  More Than Microfinance – FUDECOSUR’s Free Community Development Courses

How YOU Can Help:

  • Lend to a Kiva entrepreneur today!
  • Apply for the Kiva Fellows Program!
  • Join the FUDECOSUR lending team!

Julie Kerr is Kiva Fellow serving in San Isidro, Costa Rica. She currently supports FUDECOSUR  (Foundation for the Development of Southern Communities). FUDECOSUR is a non-profit microcredit provider, dedicated to empowering Southern Costa Rica’s disenfranchised agricultural sector.


6 October 2011 at 16:45 6 comments

What women want in Bolivia

Clara Vreeken, KF 14, Bolivia

Clara volunteers as Kiva Fellow in Bolivia. She works for the micro finance institutions IMPRO, Pro Mujer and Emprender. She visited a lot of borrowers, of whom many women.

Francisca has to fight hard taking care for her large family and has a heart of gold by inviting me at her home. Rosa was beaten by her ex husband and became stronger by having her own shoe business. Not only women have hard times surviving in Bolivia, also men suffer. Read the story of Carlos the taxi driver who almost died. And what happens with women who do not show up on repayment meetings?

Continue Reading 13 April 2011 at 09:22 2 comments

Performing meaningful work for Kiva while learning a new culture

Clara Vreeken, KF 14, Bolivia

Clara volunteers as Kiva Fellow in Bolivia. She works for three micro finance institutions. She verifies borrowers’ data, implements changes and informs the lenders about Kiva’s entrepreneurs. In this blog she elaborates on her tasks as a Kiva Fellow.

Continue Reading 29 March 2011 at 10:24 2 comments

Bolivian Kiva borrowers: buying a cow, selling food, acquiring sewing machines and constructing rooms

In this second blog of Clara Vreeken, you can meet the Bolivian borrowers of Kiva’s field partner IMPRO: Pascuala and Santos buying a good-quality dairy cow, Maria selling food and renting small accommodations, Juan Carlos and Mery buying more sewing machines and Mery’s mother Maria constructing rooms. 43% of IMPRO’s clients live from 1 dollar or less per day. IMPRO serves clients in rural areas (11%) and in two big cities (89%). 45% of IMPRO’s 2147 clients are women.

Continue Reading 20 February 2011 at 11:14 2 comments

Next Steps for Kiva’s Partner in South Africa

By Alexis Ditkowsky, KF14, South Africa

You may or may not have noticed that posts from South Africa have been on the non-specific end of the spectrum. This is because Kiva’s first partner in South Africa, Women’s Development Businesses (WDB), is currently in a “pilot” stage. Both Kiva and WDB are figuring out the best processes and procedures for working together so that WDB can keep doing what it does best and Kiva and Kiva’s users can have the reporting they crave.

If you were eagerly awaiting lots of info from South Africa, this is the post for you! And if you just want to see happy pictures of loan officers and clients, all you have to do is scroll to the bottom of the page.

Continue Reading 17 February 2011 at 04:18 13 comments

Welcome Aboard, South Africa!

by EB Moore, KF13 South Africa

Please join me in welcoming Women’s Development Businesses as Kiva’s newest field partner. Not only is WDB bringing its borrowers to the Kiva community, but it is also allowing Kiva lenders to connect with borrowers in a previously untapped country – that’s right, as of this week Kiva lenders will be able to connect with borrowers in South Africa!

Continue Reading 29 November 2010 at 23:26 1 comment

Hello Officer!

A day in the life of a loan officer in Cotonou, Benin.

Continue Reading 28 November 2010 at 14:00 4 comments

A Promising Loan

By Nick Whalley, KF12, Philippines

As I noted in an earlier blog, the bulk of the Center for Community Transformation’s loans are made to small variety store owners for inventory restocking. While this capital is necessary to sustain these businesses, and at times allows owners to diversify their offerings, it is clear there are few opportunities for growth. Competition is rampant, and demand local and limited.

It was inspiring then to meet a “round rag” maker in Manila who had developed partnerships with two companies interested in purchasing her rags. The companies needed thousands, and the borrower was having difficulty satisfying the new orders. A single employee working with a single sewing machine was simply insufficient. The production process is quite simple: scrap fabric from a local t-shirt factory is sewn into two sunflower shaped pieces six inches in diameter. Smaller pieces of colorful fabric are placed in the middle of one of the sunflowers and the other is sewn on top creating a thick, ravioli-like rag (see below). The borrower mentioned she had spent the last week looking for an affordable new sewing machine (she would purchase it with a CCT loan) to help her expand production. She also intended to hire an additional employee.

Continue Reading 24 October 2010 at 00:44 2 comments

The Red Notebook and the Glue That Holds the Whole Story Together

By Taylor Akin, KF9, Togo

Sleep-deprived and over-heated, I sat in front of the fan in the loan officers’ room. I had been waiting for a loan officer at the WAGES branch office in Hédzranawoé for over an hour and sat unmoving as the room buzzed with activity all around me. Loan officers ran in and out, clients sat down and stood up, phones rang and calls were made, passbooks opened and closed, pencils scratched paper, sweat stained foreheads. I looked at the loan officer sitting across the desk opposite me. Adam is one of the kindest people I have met since my time here at WAGES, and I have had the opportunity to visit clients with him on several occasions. He is gentle, quiet, smiles easily and works extremely hard. I watched him flip through papers and carefully write the names of clients on a yellow post-it. With every name, he would “tsk tsk,” exclaim a high-pitched “ah” sound of frustration, and shake his head.

Continue Reading 3 April 2010 at 09:07 2 comments

Video: Follow Your $25 to Vietnam, EPISODE 2!

Dear Kiva Lender,

A few weeks ago, I created a video introduction to what you might experience if you followed the money you lent on Kiva to Vietnam.  This time, meet the local staff and credit officers of the local micro-finance institution who make the magic happen.  You’ll hear of a credit officer’s story of the impact that micro-credit has had on her family directly.  Hope you enjoy!

By Lory Ishii, KF10, Vietnam

Lory is serving in Hanoi, Vietnam with Kiva Field Partner, Center of Small Enterprise Development Assistance (SEDA) as a member of the Kiva Fellows 10th class.  Please join SEDA’s lending team, make a loan to a SEDA entrepreneur or donate to Kiva today!

29 March 2010 at 11:47 8 comments

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