Our microfinance program is structured around the strength of community found in all of the aldeas of La Unión. For one, our clients cannot afford to offer physical collateral as a loan guarantee, so we rely on social collateral.
This is further bolstered by a board of directors in each aldea, comprised of leaders from that village. They make sure only responsible people are receiving loans and they're making sure people stay responsible throughout the the loan cycle. Essentially, the board of directors helps us and our clients make the right decisions.
The majority of people who live in the aldeas of La Unión own small plots of land, or no land at all. Many must borrow land just to grow the food they need for subsistence. Others complement this with income from a small coffee farm. With microfinance, we help our clients to sustainably improve their production and increase their income to rise out of poverty.
How Our Loans Work
Our microloans are given out when farmers need them -- for coffee, bean, and corn farmers in La Unión, this occurs around the months of June and September.
Farmers repay loans at the time of year when they receive income, which is during coffee harvest (around December to March).
We do not give out loans in the form of cash; rather, our loans come in the form of agricultural inputs to be used toward improving the harvest, or production tools for field maintenance or crop processing.
Interested in learning more about the structure of our microloan program?
Want to support farmers with a microloan?
Please contact us for more information!
Our approach to microfinance is tailored to the unique situation of La Unión. We provide rural microfinance to small-scale agricultural producers of coffee, corn, and beans. Our microfinance program gives our clients the financial resources to improve their production, which then increases their income.
In addition to the complementary programs of training and market access, microfinance is essential to giving our clients the opportunity to provide for their families and break out of continual debt.