A Small Loan: The Secret Ingredient of Success
Simply by joining a peer-operated Savings and Internal Lending (SILC) group, Paubla’s fortunes have changed for the better. She and her husband, Javier, have always been hard workers, always trying to figure out something else they can do to get ahead. In addition to raising staple crops like corn, wheat, and beans, Paubla has supplemented their income by selling baked goods and “nacatamales,” a traditional Nicaraguan dish made with corn and pork.
But, with no way to establish credit and apply for loans, you can never really improve your business and get ahead. Especially not if you’re forced to rely on high-interest “informal” loans. Paubla was glad to accept an invitation to attend an informational meeting about sustainable agriculture sponsored by local partner Centro Inter Eclesial de Estudios Teológicos y Sociales (CIEETS). She was intrigued by the notion of the SILC and its low-interest loans and emergency fund, and joined the group. As she learned best practices for farming in their ever-changing climate, she began saving money little by little with her SILC.
Soon she qualified for her first loan, which she used to invest in expanding her bakery and nacatamal businesses. She bought land so she and Javier could raise vegetables, grains, fruit trees, and medicinal plants. Then she started selling clothing. The increased income enabled her to grow her operations, improve her agricultural efforts, and buy a cart. All of this boosted their income.
Support from Javier and her SILC friends has helped Paubla balance the challenges of farming and running several small businesses, and to thrive despite competition. She’s improving her sales, managing her finances, and building her self-confidence.
She says, “Joining the SILC has been one of my best decisions ever. I’ve learned to save and found a supportive network. Together, we’ve achieved what once seemed impossible, and now I can dream of a better future for my family and community.”
Nicaragua Carazo Diriamba Program
Led by Church World Service and Local Partner CIEETS