August Microcredit Club Update

The U-City Microcredit club met virtually on July 27, 2017 to make 7 loans in the amount of $625 and reach two significant milestones .  The two milestones were 500 loans made and $40,000 in loans made.

Here are the loans:

Akbari is 47 years old, married with four children and lives in Multan, Pakistan.  Her husband is a driver but is not able to make enough to support the family.  As a result, 15 years ago Akbari started making papar (a dessert similiar to a crepe) at home, where she also sells it, warm and fresh.  She is borrowing 432 rupees ($400) to purchase the white flour, oil, salt, etc. she needs to fill her customers' requests.  She will pay the loan back over 12 months, beginning in September.  We loaned $100.  

This was loan number 500.

Christhian Israel is 20 years old and lives with his parents in Tulcan, Ecuador.  He is friendly, sociable, and enterprising. Because of the low income of his family, he started a business selling Polish oats (keselifsa), a nutritional drink.  He is well received by his customers and his business has become successful.  He is borrowing $1500 to purchase more Polish oats in order to keep the good concentrated flavor of the product fresh.  He will pay the loan back over 16 months, beginning in October.  We loaned $100.

The Djiriwa-Yana Group is 12 ladies who live in Diallassagou, Mali.  They are borrowing $2,675 to be paid back in one balloon payment in March, 2018.  Toumata is a member of the group.  She is 60 years old, married to a farmer, and has six children.  She has sold sheep for 20 years.  She buys the lambs at one of the markets, feeds them for several month,s and then sells them.  She will use her portion of the loan to buy more lambs.  We loaned $50.

The Luz Y Vida Group (Light and Life) is comprised of 14 women who live in Caaguazu, Paraguay.  They are all part of a program developed by Fundacion Paraguay called "Poverty Stoplight."  A stoplight measurement tool is used to help borrowers self-identify the type of poverty that affects them the most (lack of income, lack of financial opportunities, poor living conditions, etc.).  They rate 50 areas of their life as green (not poor), yellow (poor), and red (extremely poor).  

Then together with their adviser/loan officer, they develop a plan to resolve yellow and red indicators. The group is borrowing $3,050, which they will repay over 6 months, beginning in September. Alba is a member of the group.  She is a street vendor and sells fruit.  She will use her portion of the loan to purchase a wider variety of fruits.  With this loan of$100, we have now loaned $40,000.

The Las Gaviotas Central Group is made up of 8 women who live in LaPaz, Bolivia.  The group is run by a Board of Directors and Adela is the president.  They are borrowing $6,150 to be repaid in 10 months, beginning in September.  Adela purchases vegetables from the wholesalers and sells them from her stand.  Her portion of the loan will be used to buy more vegetables.  We loaned $100.

The Flor De Primavera Group is 4 women who live in Diadema, Brazil.  They are borrowing $2,550to be repaid in 6 months, beginning in September.  Apercecide is the leader of the group.  She has been selling home products for 4 years.  She began selling door-to-door but has now grown her business enough to have her own site.  She will use her portion of the loan to purchase household appliances and accessories for the bedroom and bathroom to sell. We loaned $100.

Madee is a hardworking, responsibleperson who has a small clothing store in San Pedro de Macoris, Dominican Republic.  She started her business several years ago only selling clothing.  Over time, she has expanded her business to include fashion accessories and other merchandise.  She is borrowing $650 to purchase additional merchandise for her store.  The loan will be repaid in 6 months, beginning in October.  This is her 16th loan. We loaned $75.

So, there you have it.  500 loans for $40,000 in 77 countries with a default rate of 1.6%.

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