Melita Dela Cruz

Thank you for your loan. It has been disbursed to Melita Dela Cruz by Ahon sa Hirap, Inc. (ASHI) in Philippines. We are excited to watch this business grow. Over the 11 months of this loan, Ahon sa Hirap, Inc. (ASHI) will be collecting repayments from this entrepreneur and posting progress updates on the Kiva website.

Dear Lender,

Thank you for supporting the Ahon sa Hirap, Inc., otherwise known as ASHI, here in the Philippines.

Ahon sa Hirap, Inc. translated from Tagalog to English means “to rise up from poverty” and is the oldest example of the Grameen Bank approach to microfinance in the Philippines. Kiva launched its firs venture in the Philippines in November 2008. ASHI was among the first group of microfinance institutions partners.

All new Kiva microfinance partners start in what is called “pilot status,” which is like an introduction; a “getting to know you” phase. Both Kiva and the partner institution have to make sure the relationship is going to work – after all, Kiva now has over 120 partners in more than 50 countries, and that’s a lot of different ways of doing business.

After both parties have established some internal controls, a partner can be moved to active status – which means a higher fundraising limit and a more solid partnership. I’m happy to announce that, due to hard work from the President and staff members of ASHI, Kiva has approved ASHI for active field partner status! The main way you, the lender, will be able to see the difference is through increased loans on Kiva.org over the next few months.

For the past three months, since June 2009, I have been serving at ASHI as a Kiva fellow, assisting in the transition from pilot to active status. The time has flown by and I can hardly believe that my fellowship is coming to an end. I’ve learned so much about microfinance in practice and in the field, and I wanted to share a few of my biggest takeaways with you.

Microfinance is about more than a loan. The loan is the first step, the building block, and for that, Kiva lenders, I really thank you from the bottom of my heart, and from each and every ASHI member and staff. You are the ones who turn the key in the ignition. The borrower is the driver, They have a new path in front of them that can lead them out of poverty. What do I mean by "more than a loan?" Let me tell you.

Microfinance is also structured lending. Many people in poverty can get loans from loan sharks in their town, but it’s only a loan, and it has much higher interest rates. Oftentimes, that loan would have no guaranteed terms or repayments. Someone could knock on your door and say, “Pay up today.” Microfinance changes that. It puts structure into lending for the borrowers. It introduces them to term sheets, interest rates, and responsibility. It’s not “pay when you can” but “pay weekly during a group meeting with all of the members in your neighborhood.” It’s training and retraining and “checking in” and making sure the borrowers are using the funds for their businesses and, if not, why not? How can we help? It’s caring about their future.

Microfinance is also savings, with interest rates and an opportunity to plan for the future or put away for a rainy day.

Microfinance is house repair loans when typhoons and storms sweep the country and the borrowers' homes and huts are washed away. It’s having the capital to rebuild with stone instead of bamboo so, when they next storm arrives, your home is strong enough to withstand the winds. It’s having a home that is on solid ground and being proud of where you live.

Microfinance is educational loans and savings with better rates on interest paid and accrued. It’s an opportunity for borrowers to send their children, grandchildren, sometimes even nieces and nephews, to school.

Microfinance is life insurance policies for family members. Financial literacy classes for new members. Sustainable farming and agriculture classes. Training, tips on packaging, on taking goods to market, on how to grow your business in a way that will help lead you out of poverty.

Microfinance is community. It’s women gathering once a week to repay, discuss their business problems, and come together as a second family. Some borrowers that I’ve met joined ASHI because their husbands died and they were lonely. Some joined because, without a new primary business or ability to start a second business, their families were going to struggle to put food on the table. Some join quiet and shy and find their confidence and become leaders in their community. Many have told me they are better mothers, daughters, wives, sisters and friends because of ASHI and microfinance.

Yet, no matter WHY they joined – the result is always the same. Their lives are forever changed for having the opportunity to step up and make their lives better through business opportunities. It’s a hand up instead of a hand out. It’s strengthening the fabric of the poorest of the poor and changing the face of the economy of an entire country. Does that mean there are success stories at every turn? Not really. Most progress is slow and hard to see day-to-day. There is always struggle, always some who don’t make the right choices, always some that mean to, but can’t, and yes, always some that do. The thing to remember is that we all have to start somewhere and microfinance is a crucial stepping-stone in alleviating poverty worldwide.

Lastly, microfinance in enlightenment. It’s having a little extra change in your pocket for the first time in your life. Just imagine that for a moment. A little bit of change jingling in your pocket as you walk home from the market, and the feeling that goes with it. Microfinance is earning enough revenue to be able to afford medicine or hospital bills. It’s politicians taking notice that there is some access to capital in your town, and being motivated to have the roads paved, the schools repaired, and the community taken care of. It’s calling farmers, butchers, bakers, vendors, storeowners and craftsmen – ENTREPRENEURS.

Thank you again for providing the capital to lend to women at Ahon sa Hirap, Inc! Please consider lending to one of the currently fundraising loans from ASHI ( http://www.kiva.org/app.php?page=businesses&partner_id=124&status=fundRaising&sortBy=New+to+Old) or join the ASHI Lending team (http://www.kiva.org/community/viewTeam?team_id=3189).

Salamat po (Thank you),

Sloane

Kiva Fellow

Melita received her loan from KIVA through its field partner, ASHI (Ahon Sa Hirap, Inc.), in the Philippines. The loan was 18,000 PHP meant to pay for the repair of her two fish cages, 30 pieces bamboos and payment for labor expense.

When Randy Fernandez, an ASHI staff conducted Loan Utilization Check (LUC), the following purchases and expenses were listed:

900 PHP was automatically deducted from her loan as 5% Salamat Fund that will was deposited automatically to the group fund savings. Salamat is a Filipino word that means “thank you”. As a sign of gratitude to the group mates who guaranteed her loan, she shared 5% from her loan for their group fund savings which anyone from the group can borrow and use it for emergency cases.

Among her other expenditures and purchases are as follows:

2 bundles of large fishnets worth 10,000 PHP

Bamboos worth 3,000 PHP

Fingerlings and Fish Fry worth 5,000 PHP

As per LUC conducted, there was no diversion or mis-utilization happened. She carefully uses the loan in her proposed business. She presented some documentation, records, proofs of purchase and receipts.

Fishnets and bamboos were used in the renovation of her fish cage.

She is very thankful to KIVA and its lenders for the trust and confidence given. Now, she already owns a fish cage and she owes this to her lenders.

She said that, the loan had contributed and brings impact to her life.

Thank you very much for your heart to the poor.

After the entrance of Typhoon Ondoy to the area of the Philippines which caused a big damage to a hundred thousand people, Kiva field partner Ahon sa Hirap Inc. (ASHI) visited all their member living in the place where ravaged by Typhoon Ondoy. It is the place like Rizal and Laguna. Most of the member living there is really affected by what happen. Some of them lost their houses because of flood, lost their means of living, and worst lost one or more member of their family. If you see by your own eyes the situation there of the people you could tell to yourself at that time that I’m a lucky one and you really feel sorry for them, you might think that if there’s anything you can do just to help them. ASHI lend a helping hand for them in a little way like giving food which is what they really needed by now.

Family of Melita dela Cruz is affected by the Typhoon Ondoy. Their source of income gets totally damaged. When they visited Melita, she tells them that she really depress to what happen to their life. The business that they took care for long years is lost just easily. All their fish cages that they build up are now broke by the big waves and strong winds in the sea. This business has been very generous in giving them enough income for their family that is why she always used the entire amount that she received from ASHI in improving this. So it’s really depressing losing it. Their situation now is they have no income for their daily living. But Melita never give up, she knows along the way that they will build again what they lost if they just continue to pray and continue to do their best.

ASHI management and staff talk about what they can do to help all affected Nanay (this is how they call all their member. Nanay means Mother). Those are now suffering after experiencing that bad incident. One solution that they decided is the two weeks suspension for the repayment of every member, this take place the week after the tragedy cause by Typhoon Ondoy. One thing that ASHI will talk about is the recovery loan (RECOVERY LOAN PROGRAM which designed specific for victims of calamity where houses and projects were completely and partially devastated) that will give to the member in order for them to rebuild their lost means of living. This is for discussion; if the member really needs it and it will really help them ASHI will not think twice to give them this kind of loan.