EnComún
Ave.
Padre Nacho # 805
Entre Escobedo y 5 de Febrero
Nogales,
Sonora, México
Phone:
011-52-631-319-4457
carlos@bancomun.org
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Microfinance
Principles
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Our
Guiding Principles
Serve the poorest clients
Link loans to savings
Use solidarity
guarantees
Practice participatory
management
Invest in Scale and
Self-sufficiency
Plan for permanence
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First bank meeting at
the BanComún office
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What
is microfinance?
Microfinance is sometimes called 'banking for the poor.'
Microfinance programs extend small loans, and other financial services
such as saving and education, the very poor people for self-employment
projects that generate income and allow them to care for themselves and
their families.
How is this different from
other loan programs?
Microfinance institutions do not require clients to have collateral to
receive their loans. They also offer a reasonable interest rate
compared to other alternatives.
Where do microfinance
institutions get money for loans?
Through donations, loans to social investment funds, and grants.
Do the very poor repay
their loans?
Yes. The repayment rate is between 95 and 98 percent. In
fact, it is higher than the repayment rate of student loans and credit
card debts in the US. They value the opportunity to leave poverty
and better their lives.
Why do you focus on women?
Experience and studies have shown concentrating on women are the best
way to improve the quality of life in a community. Women
generally use the profits from their businesses to send their children
to school, improve their family's living condition and nutrition, and
expand their business. They also are more likely to repay their
loans.
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