The biggest cost for Micro-Lenders is collecting loan payments. It’s expensive hiring someone every couple of weeks to collect $5.
This can be done with a simple automatic bill payment. Both Lender and Borrower would see every payment, and know how much is left on the loan.
The Micro-Lenders tell us their biggest issue is Loan Officer Theft, from them as well as from borrowers.
There would be an electronic trail of the Loan as well as every repayment, so Loan Officer theft would not be possible.
A new potential borrower is unknown to the Micro-Lender, so a Loan Officer has to talk to the borrower, his/her family, friends, and others before making a loan.
There would be available an entire history of the borrower’s income, spending habits, saving habits, and any previous loans with repayment history.
WCCN empowers low-income Latin American entrepreneurs by sustaining partnerships with Microfinance Institutions (MFIs) and Fair Trade Agriculture Organizations in Ecuador, El Salvador, Honduras, Guatemala, Nicaragua and Peru.
We are an extreme poverty alleviation organization that focuses on building skills, capacities and leadership of the rural poor so that entire communities can break the cycle of poverty. We currently work in countries such as: Nepal, Guatemala, Bolivia, Mexico, Kenya, Peru and Ecuador.