Loan Distribution

The Village Hopecore Office is always a little jumpy the day of loan distribution. It is an important day after all. This day is when the members of the groups who were approved for loans arrive to receive their money. This is the first step in creating a business they can support their families with. Even the stoic faces of Kenyan people cannot hide how much this money means to each person.

The groups who receive money are made up of 12 people. Most of these groups are made up of only women, but some have a few men. There are even a few that are made up of solely men.

Village Hopecore International gives each group some business training and then travels to their homes to see their assets and what they are planning to do with the money. Most people grow coffee, tea and/or bananas. They may also own a cow or two and chickens. The money they receive in the loan can be used to improve their current business or start a new one. For example, one family might use their money to put a cement floor down for their cows to stand on. (It is safer and cleaner for the cows.) Another family may be purchasing their first chicks to raise and then sell the eggs or the chickens themselves. There are many options for the families to create an income to help sustain their family.

Carlo's hands writing during the interview of one of the members.

The issue that makes the Village Hopecore employees so nervous is the question of whether or not the groups will show up. “You would think money would be a good incentive to get here,” said Carlo, the man who visited each farm and is in charge of making sure the loan money is used correctly. “Kenyan time,” as some refer to it, is the reluctance of local citizens to keep track of time. Rarely will an event start on time, but Village Hopecore tries to change this attitude in their employees and the people they work with. When dealing with the loans, timeliness is encouraged and expected.

This particular loan distribution didn’t start until three hours late.

The groups sitting in the small conference room at Village Hopecore International.

After everyone finally arrived, the people were seated in a room and the ceremony took place. Despite their tardiness, the people who received the loans were obviously excited and thankful. This small loan of about 400 American dollars at 9% interest for two years with a two month grace period, is just enough for them to create a successful and profitable business. If the loan is paid back in one year, they are able to take out another loan of equal value with no interest, which is a big incentive. However, only a small percentage are able to take advantage of this perk.

 

One woman after receiving her loan.



After the ceremony was over and the pictures were taken, the groups quickly left to start the trek back to their homes and start the process of using their new loan. The chairs are stacked up and the office returns to its peaceful self. Two weeks after the groups receive their money, they will be visited to make sure they have taken the steps they had discussed. That could mean buying the chickens, contracting the cement work or purchasing a new cow. These improvements and purchases could never be imagined if it wasn’t for Village Hopecore International.



Some of the cows at one of the farms during the appraisal visit. These cows did not have a cement floor, so that would be the first improvment made with the money.