CAUSE Canada Micro-Credit exists to improve the quality of life of economically active poor and marginalized women in Sierra Leone, Guatemala and Honduras by offering sustainable financial services from an integrated community development approach. To this end, CAUSE Canada offers microloan, business training, and life insurance services.
Because micro-credit operates on a business model, its operations will be self-sustaining in the long-run. Financial injections will not be necessary to facilitate daily operations but will instead facilitate expansions and improvements.
CAUSE Canada Micro-Credit officers conduct pre-loan business training that includes cross-cutting themes like environmental sustainability, sanitation, and preventative health. Then, throughout the loan period, officers visit the lender at least once every two weeks to collect repayment and provide counsel.
Solidarity Group Loans
CAUSE Canada Micro-Credit operates in the solidarity group model. CAUSE Canada Micro-Credit does not make loans to individual women. Instead, the women form groups of four to six and accept a loan together. Each individual is responsible to the group, but it is the
group as a whole that is responsible to CAUSE Canada Micro-Credit. This offers security to the program (groups of women use peer pressure to ensure payment and together can offer sufficient collateral) and participating women (group members support one another when they struggle and together can pay off debt without threatening life and livelihood of an individual).
Responding to a significant fear that clients expressed, CAUSE Canada Micro-Credit also attaches an optional Loan Life Insurance Fund (LIF) fee to each loan in Sierra Leone and Guatemala. At the client’s consent, CAUSE Canada Micro-Credit charges a non-refundable 1% of the loan amount to the LIF. Then, if a client dies during the course of repayment, her debt is paid off by the fund instead of being passed on to her family. Further, CAUSE Canada Micro-Credit offers substantial condolence payment to assist her family with what can be crippling funeral expenses.
LOCATION & DETAILS:
CAUSE Canada Micro-Credit operates across Sierra Leone, Guatemala and Honduras. Details about each of these countries and specific market conditions can be found here:
Category: Payday loans