Aynikuy Microfinance

Summary of Project:

Total Funding Goal:

$4,800 USD

For small loans to at least 20 family businesses in Peru

How You Can Help:

• $40 stocks one business for 2 months
• $120 stocks one business for 6 months
• $240 stocks one business for 1 year

To pay via Check: Make check payable to The Mountain Fund. In the "For" section, be sure to designate this project. Mail to: 139 Madison, NE / Albuquerque, NM / 87108 / USA

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Why This Project Matters:

Microfinance is one of the fastest ways to lift families out of poverty. This program provides the jump-start necessary for families to achieve financial security. With that security, they are able to send their children on to school. This cycle of financial security leading to additional education is the most effective way to end poverty. With very little money, dozens of families can quickly get out of poverty and give the next generation a true and lasting start at living a life free from the shackles of poverty.

More Information About This Project:

The typical salary in Peru (if you can get a job) is about $150 per month. Families cannot live on so small an income so many families have started very small businesses as street vendors, small libraries, hardware shops, grocery shops, etc. These entrepreneurs do not have easy access to needed capital to purchase inventory, or to expand and improve their businesses. Banks ask for collateral which people do not have, or charge interest rates that are too high. We have tested this program on the streets of Cusco for the past year. At present there are a total of 20 vendors obtaining loans.

Aynikuy plans to raise $5000 US as a revolving loan fund to provide micro- loans to these cart vendors. Each day a vendor may request a loan of up to $100 US from Aynikuy to stock their cart or store. Interest is at 7% and daily payments must be made on the loan. The entire loan balance is to be re-paid every month before additional credit can be obtained.

Where This Project Is Located:

• Total population of Cusco is about 300,000
• Total population of Peru is about 28,674,757 (est. 2007)
• Percentage of population living on less than US$1 a day is 37.7%