This past weekend, my sister and I had lunch with a UC Berkeley student, Cyrus C, who wants to form a microfinance club and win an initial small operating monetary grant from the Associated Students' Union. Listening to her desires and needs for her group, I came to the conclusion that trying to fully form an MFI in one semester, 16 weeks, was impossible to achieve especially since the group wants to find funding and is very transient. I've never seen it done in such a short time period. It's taken me over 8 years to establish a really solid MFI in Honduras.
The desire is to have very small loans, $50 to $100, to start home-based businesses. A member of the group has done that and is a real inspiration for the other group members. The group doesn't even have enough time to form a solid group lending environment which is often the first step in forming an MFI.
Earlier in my career when I was a Credit Union Development Peace Corps Volunteer in Senegal, I dealt with quite a few female groups using the ancient Tontin system where a group of 12 individuals had monthly savings meetings where each came to deposit a set sum - perhaps $5 to $10. At each meeting during a one year or 12 months cycle, a member won the whole pot, $60 to $120.
I suggested that this group try for 8 members and do a 16-week cycle or one semester. The suggestion was absolutely doable for the group. They're off and running. I wish them the best of success.
Wonderful post. I started at A and read all the way to Z. I definitely agree with you about India.
I enjoyed learning more about you and your travels.
This was a very well put together and inspiring post. Thanks for sharing your stories
I wouldn’t miss any post of this blog..
Posted by: boutique hotel in India | April 12, 2012 at 01:11 AM
They got a very good result to their pot and for me they will sure leading the way to success soon.In Finland there are many people really having difficulties financially and one of their solution is getting loan like you did.I seen now the importance of getting loan sometimes people are only getting loan without any important purpose and now that is the one thing i learn here.Thanks.
Posted by: Vesa Lehtomäki | November 27, 2012 at 10:14 PM
Hey,
Thanks! Great post you have written on "Getting Back to Basics - Tontins". Really I can say that your post is very informative, I'll come across your blog again when you will update it with new.
Thanks,
Nelson
http://www.villavacations.com/
Posted by: Nelson | December 20, 2012 at 03:51 AM