Microfinance

A little Story about Microfinance

Rosa's Microfinance Story

      Rosa spent the better part of her life sewing clothes by candlelight, but by the time she reached her fifties, she knew she needed a new career. The constant use of her feet, smoke fumes and dim lighting were making her ill.  Her family lived in a dirt-floored home without electricity and running water. Rosa knew she needed a new business quickly.

“Many years ago my late husband used to run a small flour mill in another part of the country. Living here, I had noticed the families nearby had to travel quite far to find a mill, so I thought it’d
be a good business opportunity,” said Rosa. But  there was only one problem: the grinding machines used in flour mills are quite expensive when you’re living on a limited income.

Rosa had heard about FINCA’s small loan and decided to apply for one. Shortly thereafter, Rosa received her initial FINCA loan of $681 to purchase her very first machine.

Today, a long line of customers forms at Rosa’s mill. Women, men and children wait, each carrying a large sack of raw corn that will be turned into flour for making.

Rosa purchased her house. Then she began making meaningful upgrades to her home. First, she installed electricity. Then, she added running water. And finally, she covered up the bare dirt floor with cement and added two additional rooms. Today, you’ll even find a refrigerator and a TV inside her home.

When asked what she’s most proud of with such a long list of accomplishments, Rosa said, “I paid for my kids to finish high school. Without this business, I would have nothing.” Even at the age of 60, Rosa has growth plans for her flour mill and her kitchen.

“I’d like to replace my two-phase machines in the mill with four-phase ones so I can serve more customers and faster. And I’d like to buy a microwave for the home,” said Rosa smiling.

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From Rosa's Story, I learned that Microfinance Institutions have the mission to provide financial services to the very poor. The thing is that many people are poor because they have no control over capital and without it they do not have any way to make money and businesses cannot start or grow. So with the loans from these institutions people are offered credit to financial services and have a new opportunity to improve their life conditions.

I hope you enjoyed this post!