In order to get a loan, a woman must form a small group to participate with her. These are usually close friends and family. Essentially, they are all co-signers, and are each held liable for the full amount. The group decides how to divvy up the funds among themselves...perhaps the newest member in an established group gets a smaller portion at first in order to prove herself. This mentality of shared fate encourages them to overcome problems together. The loans are usually for about a year, and are due at the end of the period rather than at monthly due dates. Once paid back, the group is eligible for another loan.
We had the opportunity to visit one of these groups in their neighborhood during one of their monthly meetings. Most of these women were part of an extended family whose main business is weaving straw hats. They sell these unfinished products to a local factory, who goes on to customize and distribute them. Many of the women also had side projects as well, and we were able to see a small store that one woman had set up in her house. Another sells vegetables. This particular group has been together for 7 loan cycles, and has grown from 16 to 22 members.
At this meeting, a field officer checked in with them and discussed the theme of child education and well-being. They also recapped a recent contest based on re-purposing recycled materials. Those projects were proudly on display...ranging from decorative vases to baskets to piggy banks.
I was impressed with the initiative that these women showed. They've come up with interesting ways to provide for themselves as well as be there for each other and better their community. Something else that they thought up was using WhatsApp as a tool to document and educate about domestic violence within their community.
Fundación Paraguaya has spearheaded some other interesting concepts as well. Read more about the Poverty Stoplight and the San Francisco Agriculture School.
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