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Aldea Global provides credit and training
to women in rural areas whom normally lackaccess to capital for
their income generatingactivities. This extra income improves their
family’s food security as well as their children’s health.
AGRICULTURAL MICRO-CREDIT
The minimum loan a private bank will extend to
a farmer in Jinotega is US$5,000. In other words, small farmers
are excluded from formal banking institutions. Ask any farmer what
credit means to production—everything. Our farmer credit needs
range from US$75 to a maximum of US$3,000. Most small farm loans
are less than US$500.
As a farmer association we are constantly looking
for alternative credit sources. In a recent market study, Aldea
Global found several profitable crops for farmers to produce such
as broccoli, cauliflower, beets, carrots, celery, black beans, and
red dasheen. Black beans and red dasheen are for export. Currently
Aldea Global manages a US$150,000 loan fund; however, our need is
far greater. Within five years, we would like to access credit sources
totaling US$1,000,000 to provide options and answers to small farmers.
Aldea Global has also introduced poverty lending,
enabling the poorest of the poor, the majority women—whom lack
necessary loan guarantees—to access credit. Poverty lending
consists of solidarity groups between five to fifteen members, whom
analyze the feasibility of each others credit applications. They
also require their members to start a savings account. Aldea Global
provides a single loan in the name of each solidarity group, which
the group is responsible for paying. If an individual fails to pay
his/her loan, the group takes on that responsibility to guarantee
their obligation to Aldea Global. Group credit or poverty lending
primarily benefits women to buy and sell market produce, make and
sell seasonal foods, increase home garden production, or expand
an existing small enterprise. The average group loan is US$700.
Since local banks finance medium to large farmers,
Aldea Global has strengthened its institutional capacity to provide
credit to small farmers. Our institutional strengthening includes
progressive credit policies, business plans, weekly credit committee
meetings, field inspections, collections, and even a state of the
art computer program designed for loans. This is a business. Aldea
Global is looking for serious social investors to facilitate our
growth.
At the village level, Aldea Global will use the
two most requested services - credit and marketing - to organize
its members while maintaining as its founding core the promotion
of sustainable agricultural practices as the basis for association
membership.
To better organize its over 1,000 members in 32
villages, Aldea Global will create rural solidarity committees in
these villages to provide credit, sustainable agriculture education,
and coordinate marketing efforts within Aldea Global. This year,
Aldea Global formed 15 poverty-lending groups to provide credit
primarily to women whom lack guarantees for traditional bank loans.
In January 2001, Aldea Global institutionalized
its credit committee responsible for developing and implementing
credit policies, as well as approving all credit applications. To
receive a loan a farmer or poverty lending group must be current
on his/her membership fees, fill out a loan application, provide
a loan guarantee, and receive supervisory visits from a representative
of Aldea Global’s credit committee. Aldea Global's five year
strategic plan aims to develop a US$ 1,000,000 (one million) fund
to provide credit to small farmers.
Aldea Global has 60 solidarity groups providing
credit to 361 members--60% women.
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