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“If you bring water to the desert, it may take years for something to grow..

But if you irrigate land that already has water you will be able to produce enough for both the people living there and those in the desert.”



Dr. KK Mugambi, on the importance of extending microcredit to those who are not always the very poorest


How VHI Differs
Village HopeCore International has taken a unique approach to microlending. Here are some of its most important innovations.

VHI is one of the first programs to make loans to men.
Ninety-nine percent of microlending organizations loan only to women, as they have found that women can be relied upon to repay the loans, and to use profits for health care and education for their families. At first, Village HopeCore loaned only to women as well.

When the program first began, Dr. Mugambi visited all the families of the women receiving loans, and encouraged support and involvement, especially from the husbands. Some of the husbands were uneasy about a program that planned to loan money to their wives to start businesses! This threatened traditional values. But as they realized the benefit to their families, they began helping their wives. Then, eager to learn from the women, a group of men formed and applied to VHI for loans. Dr. Mugambi took a risk. The Undugu Men's Group has almost completed their first cycle, and they have repaid their loans on time. Now, the Village HopeCore family is open to both men and women.
Before Village HopeCore, many men in the village were unemployed, depressed, and sometimes alcoholic and abusive. According to women in the program, domestic abuse has significantly lessened in the community in the 5 years since Village HopeCore made its first loans.

VHI’s loans are significantly larger than those of other microlending institutions
Most microlending organizations loans range from $10 to $50. Dr. Mugambi feels that VHI’s loans of $400 reflect the economic needs of the community -- in another country a cow might cost $40; in Chogoria, Kenya a cow plus feed costs $400.

VHI makes some of its loans to individuals who have already started businesses
Most microlending organizations loan only to the poorest segment. VHI's philosophy is that by supporting a segment of the community that has demonstrated some earning capacity, the entire community’s economy will benefit . As those individuals become more successful, they can both hire workers and buy items items they need and want, becoming an economic base for the community.