"Loani" is a communal bank located in the city of Concepción. It has 17 members all of whom have used their loans in different fields. In the photo, sitting down in the front row, wearing a grey top and holding her purse on her lap, is Constanza. She is a member and wants to share her story about how she came to take out this loan. Constanza is applying to use the loan mainly to be silver jewellery and then also perhaps to buy more accessories, such as purses and wallets that she will sell as well. Constanza tells us that her projections for the business are very positive and she hopes to make double what she invests and also have more time to spend with her daughter and to try to prosper. She hopes to see changes to both her professional life and business and hopes to see doors open for her business. Her main challenge for now is to make her business move forward. She hopes the loan will really help with this as for a long time she was unemployed and she needs to move forward for her daughter and for her baby that she is now carrying. Constanza is looking forward to the training she will be given. Among her goals, Constanza wants a stable business and to continue working with the foundation as they have really helped her.
Loani, es un Banco Comunal ubicado en la ciudad de Concepción; lo conforman 17 socios, los cuales tiene distintos rubros en los que aprovecharon su crédito. Constanza, que en la foto aparece sentada al costado inferior izquierdo y vestida de gris con un bolso blanco cruzado, participa como socia en este Banco Comunal, ha querido darnos su testimonio de cómo ha sido poder acceder a este crédito. Ella nos cuenta que el crédito que solicitó lo ocupara principalmente en comprar joyas de plata y también tiene la opción de comprar más accesorios como carteras y billeteras para poner a la venta. Constanza es muy positiva que esperar ganar el doble de lo que ha invertido y así además tener más tiempo para compartir con su hija y tener una oportunidad para salir adelante. Espera además tener cambios positivos en su negocio y vida personal, y que de esa manera además se le abran las puertas en el comercio. Su único desafío hasta el momento es de poder salir adelante con su negocio. Y espera también que el crédito le ayude a superarse, ya que lleva mucho tiempo sin trabajo y ella necesita salir adelante por su hija y por su bebe que está esperando, espera además con ansias las capacitaciones que tendrá. Dentro de sus metas de encuentra tener un negocio establecido, y de todas maneras seguir participando en la Fundación ya que ayuda mucho de forma integral.
More information about this loan
This loan targets populations in financially underserved regions of Chile. Thanks to its numerous branches, Fondo Esperanza is present nationwide and offers loans to micro-entrepreneurs in a country known for its limited microfinance industry. This Kiva loan enables entrepreneurs to maintain their current businesses in areas where Fondo Esperanza is the only available and accessible financial institution.
About Fondo Esperanza
Fondo Esperanza (FE) is a private non-profit organization that supports entrepreneurship by providing micro-credit and training to people living in poverty in well over 100 cities throughout Chile. By providing these services, FE aims to improve the living conditions of the entrepreneurs and their families. In 2010, FE provided loans to more than 41,000 entrepreneurs. It utilizes a communal banking model in which groups of 18 to 25 clients meet on regularly and guarantee each other’s loans. The members use their portion of the loan to create or expand their own businesses. In the group meetings, clients receive training though the FE Entrepreneurship School, which enhances clients’ personal and business skills and ability to work in groups.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.