'Raíces Chilotas' is a community bank located in Castro, the tenth region of Chile. The members of this group sell clothing, do hairdressing, sell potato empanadas and other food, sew and María, who is on the left of the photo wearing a black coat and green sweater standing next to a member wearing a pink sweatshirt, has a business selling empanadas, 'completos' (a type of hot dog) and lunches. She has a stall in the street market and also sells to her neighbors. She started her business three years ago so that she could help her son and pay for his education. The problem that she has faced has been trying to acquire a spot in the market from which to sell her lunches and empanadas.
María will use the loan she has requested to buy more merchandise so that she can make her empanadas, hot dogs and lunches. She also hopes to be able to buy a machine to knead the dough for her empanadas. She very much enjoys working together with Fondo Esperanza and it has been good for her to share with people who think like she does, who want to improve themselves and who all have the same goal.
Raíces Chilotas es un Banco Comunal ubicado en Castro, X región de Chile, en donde las socios tienen rubros de venta de ropa, peluquería, venta de empanadas milcao y comidas varias, costuras y María, quien está al costado izquierdo de la fotografía con un abrigo negro y sweater verde junto a una socia de polerón rosado, tiene un negocio en donde vende empanadas, completos y almuerzos, tiene un puesto en la feria y además le vende a sus vecinos. Comenzó su negocio hace tres años, y lo hizo para poder ayudar a su hijo para pagar sus estudios. Los problemas que ha tenido han sido más que nada por lograr un lugar en la feria para poder vender sus almuerzos y empanadas. Con el préstamo que ha solicitado podrá comprar más mercadería para poder hacer sus empanadas, completos y almuerzos, además de tener la esperanza de poder comprar una máquina para estirar masa para empanadas. Le gusta mucho trabajar junto a Fondo Esperanza, además de que para ella ha sido favorable el poder compartir con personas que piensan igual a ella, con ganas de superarse y todas con un mismo propósito.
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.