1331 N. Commerce St., Stockton, CA 95202 phone: 209.943.6165 fax: 209.943.7046 e-mail: information@katalysis.org

Women's Village Banking was founded in 1984 and is dedicated to fighting poverty through a unique partnership relationship with indigenous nonprofit agencies. Women's Village Banking currently serves over 20,000 microcredit borrowers, benefiting nearly 100,000 people, especially women and children, in poor, rural communities throughout Central America.

WHO BENEFITS?

Women's Village Banking serves women in rural villages who are often forced to eke out a living on less than a dollar a day. Through self-employment, they are able to avoid exploitation in maquilas (garment factories), agricultural labor, or migration to the cities. Small businesses have very modest origins and are typically based in the microentrepreneur's home. Women may make tamales, tortillas or snack foods to sell; some buy and sell clothing, cosmetics, basic household items, or firewood; still others weave fabric or make traditional artisan goods.

HOW DOES IT WORK?

Women's Village Banking provides small loans (often less than $100), business training, and education to solidarity groups of borrowers in poor communities throughout Central America. Affordable credit and business training are simply not available to thousands of fledgling microentrepreneurs who have created their own small businesses to supplement family income.

The "bank" itself is a group of 20-30 women who have viable small businesses. As a member of the village bank they can receive a series of small loans, training and important peer support from other members. At the beginning of each loan cycle, women receive from $70 to $190 that they are required to pay back with interest and savings. In order for the group to receive its next loan, every bank member must have repaid her previous loan -- thus ensuring very high (97%) repayment rates. Throughout the life of the bank, members also receive ongoing training and technical assistance to help them improve their small businesses and fully develop their human potential.

Women's Village Banking is a self-help program, not a hand out. Our experience and research clearly demonstrate that the poor are highly motivated and committed to improving their standard of living, especially for their children. They simply need an opportunity to succeed without charity.

WHAT DOES WOMEN'S VILLAGE BANKING ACHIEVE?

The results are real: increased household incomes, improved family nutrition, better education for children, and, often for the first time, a personal account a local financial institution. In addition, women are able to contribute to the development of their communities in meaningful ways -- whether it's bringing potable water to the village, collecting trash, or planting trees.

WHY WOMEN?

The gender emphasis is deliberate: of the 1.3 billion people living in absolute poverty 70% are women. Women face specific barriers to economic and entrepreneurial success: a lack of collateral and credit history; insufficient capital; low literacy rates; unfamiliarity with banking systems; and gender-based prejudices. And yet, women have proven to be excellent investments: loan repayment rates are over 97%!

Our goals in the coming year are to continue to grow the scale of village banking programs, to increase Partners' access to credit funds, and to expand the Partnership to Nicaragua, the second poorest country in our hemisphere.

The gap between rich and poor, North and South, continues to widen. Poverty is the world's leading cause of death. We believe that Women's Village Banking is a powerful anti-poverty tool and that this program capitalizes on people's irrepressible drive and innate capacity to succeed, for themselves and for their children.

Women's Village Banking is a trade name of the Katalysis Partnership.