Edón, who you see kneeling in the middle of the photo with the light colored jacket, participates in the communal bank called Full Bank, which is located in the Villarica region of Araucanía in Chile. The members of Full Bank have businesses such as crafts, farming and freight transportation. Edón is a woodworker. He has been doing this work for about thirty years. He was a teacher. When he retired he decided to follow his love of woodworking, as it is a tranquil business that he can do from the comfort of his home. Also, from the money that he earns from his craft, he can provide for necessities that he can’t afford with his retirement income. Edón needs this loan in order to buy wood supplies and some tools that he needs for his job. It is also not so bad that the winter vacation is arriving and many tourists will come to Villarica. He has told us that he likes to work with the Hope Foundation as it gives him insights into the life histories of others. He has been impressed with the tremendous support exhibited by his many friends in the group
Edón, quien aparece hincado en medio de la foto con chaqueta clara, participa en el Banco Comunal Full Bank, que está ubicado en Villarrica Región de la Araucanía en Chile. En Full Bank hay negocios como los de artesanos, comerciantes personas que trabajan el campo, y hacen fletes. Y Edón es artesano en madera, lo es hace más o menos 30 años, ya que él es profesor, pero al jubilarse opto por seguir su amor que es la artesanía en madera, ya que es un trabajo tranquilo y puedo hacerlo y tallar en la comodidad de su hogar. Además con el dinero que ha ganado con su artesanía puede suplir algunas necesidades que no suple el dinero de su jubilación. Edón necesita el dinero para comprar madera insumos y algunas herramientas que necesita, y estima que no le irá mal ya que luego comienzan las vacaciones de invierno e irán muchos turistas a Villarrica. Comenta que lo que más le ha gustado de trabajar en Fondo Esperanza es el hecho de poder conocer distintas historias de vida y los amigos que ha podido encontrar en su grupo además de destacar la tremenda confianza que existe entre todos ellos.
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.