My Project

by Chris

Stephanie and I are in the process of writing our reports for the past trimester and I thought I would share the details of a project I am working on, which in many regards will define my service here. Below is exactly what the members of our management team will read:

This project is based on the model and process laid out by FINCA. My role in this project has been to invite community members, encourage doubters, and facilitate meetings and workshops.

The micro lending enterprise has several benefits as outlined below.

The idea, first and foremost is to sell shares in a new enterprise. With the money raised we make loans available to community members, with the stipulation that they will use the loan for productive activities. We earn a percentage and a commission on our loans. Loans are, therefore the catalyst that keeps the system going. The income generated from these loans is both the first benefit I wanted to talk about as well as the major motivator to keep the board of directors working diligently.

Secondly we offer a savings program for minors. We allow them to make deposits roughly once a week and allow them to withdraw only twice per year. We offer our depositors 10% interest. All of the money for this program is also used to make loans available. Along with this program we also offer workshops about savings, financial literacy and healthy lifestyles. The second benefit is a chance to earn a high percentage on a savings program.

The third level of benefit is the new availability of loans. This project makes loans available to the community without a hugely bureaucratic process, at the same time the enterprise charges roughly half the interest of other, larger organizations and an even smaller percentage when compared to other “predatory” loan services. Through this service development can be achieved on a personal level for people who now have access to funds and options to start or expand businesses that they otherwise would not, were the services not available.

The fourth and last level of benefit is the training and practical experience gained by the members of the board of directors. They volunteer to do all the work, and in return, they receive their part of the profit as well as a huge amount of experience in business management, loan administration, and accounting among other topics.