Consejo Ido

Thank you for your loan. It has been disbursed to CONSEJO IDO 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 Kiva lenders,

My name is John Briggs and I'm a Kiva Fellow posted in the Philippines with Ahon Sa Hirap, Inc. (ASHI). I've been working with ASHI since early March, mostly in Antique Province on the island of Panay. As ASHI is a new Kiva partner, much of my work has involved helping them set up and fine tune their Kiva field operations. My big goal has been to help move them from "pilot" Kiva status to "regular" status.

I've been doing a lot of work in the office, and many Kiva training and orientation sessions for ASHI personnel. The people at ASHI have impressed me with their dedication, talent, tirelessness, and good humor. I've also had the opportunity to meet a number of ASHI member-borrowers, both in groups at center meetings and one-on-one.

I had the good fortune to meet Consejo Ido, an ASHI member you lent to, in early May as part of a surprise "borrower verification" visit that Kiva requires when a Fellow works with any of its microfinance field partners.

When I went to visit Consejo to talk to her about her Kiva-funded loan, I was accompanied by Joy Lamprea, ASHI's local economic development officer for Antique Province. It was close to 10 a.m. on a Wednesday morning, and Joy was convinced we'd find Consejo at her stall in the Dalipe Public Market in San Jose. Joy was right -- we quickly found Consejo at the market, and she was kind enough to take time out of her busy work day to chat with us.

Consejo has been a member of ASHI since 2006. Shortly after she joined, her husband, a rice farmer, died of cirrhosis. Fortunately, ASHI was able to help Consejo cover funeral costs for her husband through its "Damayan Fund" -- life insurance that covers members and their immediate families, paid for out of a pool of money generated by nominal mandatory savings. Consejo was the first ASHI member at her center to collect from the fund, collecting 20,000 pesos after her husband died.

The loans Consejo has taken out from ASHI have helped her build a successful seafood sales business. She retails from her stall in the market, but hopes to start a wholesale business in the future. Consejo says that on average, she sells about 10,000 pesos ($230 U.S.) of fish, prawns, and crab a day, and estimates her profit margin to be about 10 percent.

Her recent achievements stand in contrast to her first attempt at fishmongering. 15 years ago, she borrowed money from a local moneylender who charged more than 30 percent a month interest; crippled by repayment demands, her business folded within months.

Consejo earns additional income from buying and selling nipa, a type of palm that's used for roofing. She said buys and sells 500 pieces (fronds) of nipa a week, paying 1000 pesos for the 500 and selling it for double that.

Ruffa, Consejo's 18-year-old daughter, is the youngest of her five children. Consejo says she hopes to be able to send Ruffa to college to get a teaching degree. If Ruffa goes on to college, she would be the first of Consejo's children to make it that far -- Consejo's two sons were only able to finish elementary school, while her daughters are all high school graduates.

When I visited, I brought Consejo a printout of her borrower page on Kiva. She enjoyed learning about Kiva, and looking at everyone who helped fund her loan. She sends her gratitude to all her Kiva lenders.

Picured in the photo that accompanies this update on the Kiva website: Consejo at her stall in the market, holding a printout of her Kiva borrower page.

About Ahon Sa Hirap, Inc. (ASHI):

Ahon Sa Hirap Inc. has the distinction of being the oldest existing replication of the Grameen Bank approach to credit delivery to the bottom tier of the poor in the Philippines. ASHI's achievements over the years have helped it become one of the role models in microfinance and credit delivery to poor women in the Philippines.

To learn more about ASHI and to see if it has borrowers in need of funding, visit its partner page on Kiva: http://www.kiva.org/about/aboutPartner?id=124

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