I had the good fortune of helping some old friends buy a house in Church Hill. It just closed, so that means it’s time to tie another home loan in Richmond with a microloan for someone… somewhere.
This time the someone is actually 10 women, and the somewhere is Indonesia. Confession: I used to live in Indonesia, so it is hard for me not to send most of my microloans there. I look at this picture of women and I feel like I’ve met them. I know exactly how flimsy those sandals feel in your hand and I can picture the street market where they were probably purchased. I see their decidedly Indonesian strike-a-pose deadpan stare at the camera and I am once again there. In the heat. Smell of smoke. Smell of smog. Animals and kids. Muddy shoes. I miss it.
One of the women is going to use her part of the loan to buy 2 piglets, pig feed, and improve upon her barn.
These women are taking out a group loan. This is very common in microfinance. A group of neighbors takes out a lump sum of money and they are all responsible to pay the full amount back. If one woman does not repay her share, the other women must pay her part. This is actually one of the things that makes microloans in developing countries so successful; there is accountability. Each of these women will support and encourage the other to work hard, plan well, save, and be successful in her business.
In the group, everyone has a stake in everyone else’s success.
Isn’t it the same for all of us?
Want to change the world in a small way? Join the RealRVA Lending Team.
Want to learn more about microfinance? Check out some of the Microfinance Websites on the right.
Baby Steps… All you need to do is link to this post on twitter or your facebook page to earn $1 more for this loan. Just leave a comment and let me know that you did!