Virgen Del Rosario Group

“Virgen del Rosario” is a small rural community bank of FINCA Peru’s Wari-project which provides its credit with education services in the rural areas of Huancavelica. Huancavelica is considered one of the poorest regions of Peru and, as a very mountainous area ranging 2,000 – 5,000 meters above sea level, has many limitations such as the cold, the difficulty to grow crops, and the lack of an adequate infrastructure of roads and communication systems.

BCR “Virgen del Rosario” is located at approximately 2,500 meters above sea level in the community of Huanchuy, in the district of Chincho, province of Angaraes. The small town of Huanchuy is located at the border of the Cachi River and used to be an old colonial hacienda. Although the village politically belongs to the region of Huancavelica, all business is done with Ayacucho, the biggest city nearby. Most members of the group have never even been to the capital of their region!

The main activities of the population are related to agriculture. The valley of Huanchuy has an excellent climate because of the relatively low altitude and the availability of water throughout the year. The climate makes it possible to grow a great variety of products like tara and black corn and many fruits and vegetables like avocado, pacay, tuna (prickly pear cactus fruit), sugarcane, carrots, and lettuce. In higher altitudes, the population also grows potatoes. From the tuna cactus comes another product: cochinilla, a small parasite (insect) that is used for its powerful coloring for cosmetics (locals used it to paint their faces or lips in traditional festivals). Besides cultivating all of the mentioned products, most people dedicate their time to raising small animals like guinea pigs, chicken, ducks and rabbits; and bigger animals as cows and bulls.

Currently the bank is starting its first loan cycle with 12 female borrowers and a total loan of 3,400 soles (about 1,225 US$). The loans range from 200 up to 600 soles. As the group is just starting its first cycle, the group was not able to save. But all agree to save in the future for reinvestment in their businesses or maybe to buy a community sewing machine. The expectations of the members of the new village bank include receiving trainings on “marketing” (how to improve their business) and learning how to weave and stitch cloths. Besides that, they think the village bank will be an excellent way to share ideas and experiences.

One of the members of the community bank is Nancy. Nancy will receive a loan of 600 soles and runs a small grocery store in the community. With her loan, she will increase her merchandise, buying more soft drinks, beers, sweets, fruits and other groceries. Nancy´s dream for the future is to have her own sewing business. With FINCA Peru, she wants to learn to save so that she can improve her business and help her father.

Maura tells another story. She sells vegetables at local weekly markets, going from one to the other. But her main market is the one in Secclla. With her 600 soles loan, she will buy more vegetables like carrots, black potato, celery and onions. Part of what she sells comes from her own small terrain, but she also buys vegetables from other members of the community. Now that she will be working with FINCA Peru, she hopes to save more and to work more responsibly to be able to pay for her loan. She will use her savings to reinvest in her business.



About Group Loans
In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a group guarantee. Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults. Learn more

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