The concept that "it takes a village" should be pretty well ingrained in our minds by now. There's power in numbers, and by working together, we can accomplish amazing feats. Village Banking is an example of a very special kind of team work, and at its core, is the practice of Micro-loans. Micro-loans can make a life-altering difference for women trying to lift themselves out of poverty. There are an estimated 1.5 billion people worldwide currently living in poverty. And here's a news-flash: nearly half of all impoverished families in the developing world depend on the income generated by women.
For most of these impoverished people, small loans would allow them to improve a business or start a new one. Based on information from FINCA, a loan as small as $25.00 can allow a Guatemalan woman to sell more tortillas, providing her with the extra income she needs to keep her children in school.
Village Banking, which uses the principles of self-help and free enterprise, provides impoverished individuals with loans, not hand-outs. Micro loans build discipline, self-confidence, responsibility, and independence as women create and grow their own businesses. It should come as no surprise that women have proven to be responsible borrowers, diligent savers, and competent managers. What's more, they use their income almost exclusively to benefit their children.
Micro-loans can be the foundation of solid solutions to poverty, with the potential to bring about significant, long-term change as opposed to the "band-aid" of sporadic, inconsistent welfare or hand-outs that merely gloss over the problem. As each loan is repaid, the borrower's credit line increases, which empowers the borrower to do even more.
Village banks can truly be the way out of poverty for millions, and by donating to them, you can be sure you will be helping not only the borrower, but the children, families and community of that individual as well. This is a valid way to pay it forward.
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