The basic idea is that in rural communities are huge needs for small loans (super small we´re talking like $5 to buy medicine) because at certain times of the year when there are no harvests the cash flow trickles dry. But, there are no banks out here. Therefore, I formed a community bank with about 10 women, complete with President, Secretary, Treasurer and Auditor.
Every moth each member deposites 40 cordobas, equivalent to about $2 in the bank. This creates a fund from which they can borrow money with 10% interest. At the closing of the bank in December, each member gains back all her deposits, plus earns a little extra with the interest that gets divided equally among all members.
The community bank is a project I´m really excited about because it doesn´t depend on outside organizations, it teaches women the habit of saving and it teaches leadership. All in all a really cool idea!
