Carolina, who is located in the center of the photo, wearing glasses and a scarf, is a member of the Los Artesanos communal bank in Castro. The members of this communal bank have different businesses such as fast food sales, paper goods, arts and craft making and sales, and folk dancing. Carolina has a paper goods store and also sells new and used clothing there. She started six months ago, out of a need to be near and available to her children, so she got some savings together and was able to set up a small business. Her challenges are in expanding her business by also selling costume jewelry. Carolina needs the money to buy new clothing, now that the Christmas season is approaching and people who live near her have requested new clothing. What she has enjoyed most about Fondo Esperanza is that it has allowed her to get to know people who face the same challenges as she.
Carolina, quien se ubica en medio de la fotografía con lentes y un pañuelo burdeo en su cuello, participa en el Banco Comunal Los Artesanos, ubicado en Castro. Los socios de este Banco Comunal tienen diversos negocios tales como venta de comida rápida, bazar, confección y venta de artesanía, grupos folclóricos. Carolina tiene un bazar, en el que vende también ropa nueva y reciclada. Comenzó hace 6 meses, y lo comenzó por la necesidad de estar cerca y disponible para sus pequeños hijos, es por esto que junto algunos ahorros y pudo instalarse con un pequeño negocio, como desafío se ha impuesto poder agrandar su negocio vendiendo bisutería también. Carolina necesita el dinero para poder comprar ropa nueva ya que se aproxima navidad y la gente que vive cerca de ella le ha pedido tener ropa nueva. Lo que más le ha gustado de poder trabajar junto a Fondo Esperanza es el hecho de conocer gente que tiene los mismos desafíos que ella.
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.