One nonprofit is Chiapas-International. This nonprofit provides funds to help women in poor areas in Latin America. The loans help these women start self-sustaining businesses in their communities. The loans, which range from $25 to $200 dollars, help these women and families take the first step out of poverty. The women of Chiapas submit an application, which is then evaluated by Chiapas-International. Once approved, Chiapas-International appoints a loan officer to meets with these women. The loan officer provides educational tips on how to make their business successful. Women sell their products and earn money and repay the loan with their earnings. There is a small interest for each loan; the interests accumulated help pay for administrative costs and an opportunity for more loans to be distributed. Once the first loan is repaid, the women may apply for a second loan.
Chiapas-International works with three microcredit institutions: AlSol, Esperanza International and Grameen Foundation, and has helped over 47,000 women with a 97 percent repayment on these loans.
Microcredit has proven to be successful. In 2005, the United Nations declared it the year of Microcredit. In 2006, Muhammed Yunus, the founder of Grameen Bank, received the Nobel Peace Prize for “their efforts to create economic and social development.” Yunus established Grameen Bank in 1976 during a famine in Bangladesh. Grameen Bank borrows money to over 6 million people – of which 97% are women.
Microfinance is not the only solution to end poverty. There are many factors that need to be taken into consideration. Nonetheless, microcredit has proven to be a great stepping-stone for people to get out of poverty. The goal is to get the indigenous women of Chiapas started and on the first step on the ladder to end poverty.
"Give a man a fish, he'll eat for a day. Give a woman microcredit, she, her husband, her children and her extended family will eat for a lifetime."
- Bono
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