VILLAGE HOPECORE INTERNATIONAL | home
Village HopeCore borrowed its principle of loaning to women in groups from a longstanding practice in African villages called The Merry-Go-Round.
A group of women formed and each month contributed a small amount of money to a pot.
The total went to one of the women each month, thereby enabling each of them to do more than any one of them could have done on their own.
When a group of 12 forms, and applies for funding, they become Village HopeCore Associates by paying a monthly dues of 50 shillings (about 75 cents).
Once they are funded, they become Village HopeCore Partners.
How It Works
In Chogoria, villagers wanting to start or improve a business have had nowhere to turn to find the capital for their projects. They can't afford the 20% interest a bank charges on a loan, nor do they have any collateral.
Village Hopecore addresses this need by making small loans available at low interest and with no collateral. Repaid loans fund new loans. Groups of 12 form who are committed to supporting each other through the 18 month microlending process.
They attend business and personal development trainings together. If one person cannot meet her monthly payment, the others in the group must agree to make that payment. In this way, Village HopeCore builds communities through group responsibility
When a group is funded, each person in the group receives a $400 loan to start or develop a self-sustaining business. This amount reflects the current economy in Chogoria. For example, most villagers can raise a cow, and in Chogoria a cow plus feed costs approximately $400. Some examples of businesses include dairy farming, dressmaking, furniture making, raising goats and chickens, and operating a hair salon. The loan is repayed over 18 months, at an interest rate of 6%. Each group attends trainings in business methodology, personal development, and HIV/AIDS prevention. Then, each person develops a workable business plan. Business are monitored and on-site technical support is available. Successful groups mentor new groups.
Repaid loans are used to finance new groups, creating a village-owned and self-perpetuating fund, a Village Trust Bank. To date, there has been a 100% repayment rate.
Families are seeing the benefits in many ways:
they are able to provide adequate protein and other nutrition for their families they are able to provide health care for their families they are able to pay school fees and send their children to school they are able to afford piped water, electricity, or other necessities such as heaters, for their homes they can hire workers, benefitting themselves and the community