ProMujer

Today, for the first time ever, I was able to visit a microfinance institution. It doesn't sound very exciting, but I think it's more than just a coincidence that the first time I ever heard about mf or microloans was through a presentation given by ProMujer on their programs in Latin America. Now here I am seeing how it works on the ground.

The way it works at ProMujer is that women entrepreneurs from a specific community come together to form a group. They go together to the MFI, undergo some very basic classes about how MF works and business practices, ProMujer inspects their business, and then as a group take out their first loan. The loans are individual and each woman in the group applies it to her own business, but the reason they are grouped together is so that the women have a support system and because they are loyal to one another; the groups consist of no more than 30 people and can grown as the women pull in others from their communities. Unlike with large commercial banks, these women are not asked to provide a list of their assets, nor do they undergo a credit check. They only have to provide their place of business, their word that they will repay the loan, and promise to attend then workshops ProMujer provides (free of charge).

Loans start out at about $100 ($1,000 pesos) and after they complete a 3 month cycle, paying 3% interest of their loan plus obligatory savings every 2 weeks, they are able to graduate to a larger amount. Collectors go every week to the community to meet with the group of women and collect what is due from them. Paying late or not showing up to the meeting will affect whether or not you're able to graduate to the next level.

On top of providing financial services, the women are required to attend "trainings" or "workshops"once a week that focus on financial education (for example, business planning and administration cash flow) or "human development." Human development focuses on the themes of gender, self esteem, domestic violence, communication, depression, and women's rights. We were able to view two workshops and meet a group of women that were about to form a group for the first time; we asked them all what their businesses were and how they felt ProMujer and their microloans helped both their businesses and their personal life. I think for the most part, the women were happy to be able to provide for their family and contribute financially in a larger way.

Tomorrow we go to another MFI formed by an organization called CAME....