NamasteDirect
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NamasteDirect, a project of the Namaste Foundation, is a microcredit non-profit organization based out of San Francisco, California.
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[edit] Mission
[edit] Fund small loans to first-time borrowers
NamasteDirect funds small loans to first-time borrowers, primarily women, in some of the more marginalized communities in Central America. These loans are used to create or augment a small business such that the borrower can reach economic self-sufficiency for herself and her family. NamasteDirect raises money from private donors and foundations, and channels these funds to established, well-managed microcredit organizations, initially in Guatemala. NamasteDirect makes such grants primarily as an incentive to serve first-time borrowers in rural areas who would otherwise not have access to credit services.
[edit] Create a connection between donors and borrowers
In order to strengthen the connection between donors and borrowers, NamasteDirect provides feedback and information to donors about the specific destination, use and impact of their funds during the course of the loan cycle.
[edit] Nurture and train a new generation of philanthropists
NamasteDirect encourages involvement of a younger generation (target ages 20-35) in the field of microcredit and international development through various opportunities, including board membership and a fellowship program that provides a unique and powerful opportunity for students to travel to Guatemala and learn first-hand about microcredit as a form of bottom-up international development.
[edit] History
NamasteDirect grew out of a program of the Katalysis Partnership, an organization that Bob Graham founded in 1984 and that recently transferred full ownership of its institution-building program to the Katalysis Network of Central America. The Network is now headquartered in Honduras and is run by its Central American NGO members. In September of 2004, Bob Graham founded NamasteDirect with the intent of continuing to support some of the smaller organizations of the Katalysis Network, specifically those that still depend on grant money to reach some of the more marginalized and harder-to-reach rural microcredit borrowers.
Since its founding, NamasteDirect has raised over $300,000 which is helping to capitalize the tiny enterprises of over 1,500 women in rural communities of Guatemala. The implementing organizations are MUDE (Women in Development) in Villa Nueva, FAPE (Foundation for Assistance to Small Enterprises) in Guatemala City, and Puente de Amistad (Friendship Bridge) in Panajachel.
[edit] Partner Organizations
[edit] FAPE (Fundación de Asistencia para Pequeña Empresa)
Guatemala City, Guatemala
Number of clients: 2,350 (92% women)
Started in 1984 with a small amount of seed capital, FAPE supports micro-enterprise development in the most marginalized communities. A change in leadership three years ago brought about a more focused and professional approach to microfinance, and the organization has methodically built its financial and management capabilities since then. FAPE is now an important part of a thriving microfinance community, serving a vital role by reaching out to under served communities in rural areas of Guatemala. Its methodology is primarily group lending through a model called Bancos de Mujeres de Confianza (Banks of Trustworthy Women), although as of recently FAPE also offers solidarity group loans and individual loans. FAPE’s loan repayment rates are on the order of 95-97%.
[edit] MUDE (Asociación de Mujeres en Desarrollo)
Villa Nueva, Guatemala
Number of clients: 3,900 (87% women)
Since 1991, organizing women's groups has been central to MUDE's working strategy. Most initial loans are made through community banks consisting of 20–30 women who have at least one year of experience running a business. By joining a community bank, a woman agrees to participate in business training provided by MUDE, to make regular loan payments, and to set aside a portion of her earnings as savings. Once the first loans are repaid (usually after about six months), borrowers are eligible for larger loans to foster more business growth. More recently, MUDE has added solidarity groups and individual lending to their offerings.
[edit] Puente de Amistad (Friendship Bridge)
Panajachel, Guatemala
Founded in 1998, Puente de Amistad is committed to reaching the poorest areas of rural Guatemala and providing credit to women (primarily Mayan). Puente de Amistad also offers a unique educational component for borrowers and their children. Mothers are aware that for their children to have better opportunities they must learn Spanish in school, but that is relatively expensive for the Mayan community. Therefore, once a woman has successfully completed a full six-month loan cycle, she is eligible for scholarships from Puente de Amistad for her children to attend school. The scholarships pay for the registration fee and some supplies and books. Puente de Amistad also provides educational services for the borrowers, with an emphasis on capacity building. Loans are given to communal banks of approximately 25 women with subgroups of about five women who share responsibility for loan repayment.
[edit] References
United Nations Department of Public Information: "International Year of Microcredit 2005" [1]
[edit] External links
- NamasteDirect ~ Ending Poverty One Loan at a Time
- Friendship Bridge
- Katalysis Partnership
