Guest Blog - A gift that keeps on giving

When for my birthday I asked for donations to my charity instead of presents none of my friends or family thought that was such a good idea. To be fair many of them give already but generally people like to give gifts, to pick something out and see it be appreciated. To me the idea of getting donations without painful form filling, standing in the cold or embarrassing ‘asks’ seems like a great gift but for people who can’t see it being spent, see the money making a difference or people enjoying what it provides for them it’s perhaps less rewarding.
With donations as with gifts it’s great to be able to see it make someone happy.
One of my friends, Helen, was listening when I told her about how much I loved Lendwithcare. How not only was the scheme a great concept but one that comes with an amazing amount of consideration and attention to lenders. My enthusiasm for Lendwithcare led me to ask to visit their partner in Manila, something I wrote about in a previous post and since then I have continued to be impressed with the varied and regular updates, enthusiastic blogs from staff and frank explanations when things have gone awry.
I’ve bought Lendwithcare for three people that I can remember. For my young niece as a nicer way of giving her some money, although I hope she’ll never withdraw from the account, for my dad I chose an entrepreneur from Malawi as he’d spent time there many years ago and for someone who I suspect might never have cashed it in. And this is where vouchers really come into their own.
 We’ve all received presents we didn’t want. Without wanting to name and shame I’m sure my whole family would understand that we don’t really want to receive any more t-shirts or key rings bearing pictures of holiday destinations. But this present doesn’t get abandoned in a drawer or only worn to bed. Even if that person never looks at it again the money is already in the right place doing its job.
For my birthday last year Helen got me a Lendwithcare gift voucher. So now even though I’ve put money of my own in over the years I now think of her gift every time I get a repayment or have enough in my account to make a new loan. That’s an awful lot of enjoyment already out of one voucher. I’m sure it will carry on for years to come.
With donations as with gifts it’s great to be able to see it make someone happy.
One of my friends, Helen, was listening when I told her about how much I loved Lendwithcare. How not only was the scheme a great concept but one that comes with an amazing amount of consideration and attention to lenders. My enthusiasm for Lendwithcare led me to ask to visit their partner in Manila, something I wrote about in a previous post and since then I have continued to be impressed with the varied and regular updates, enthusiastic blogs from staff and frank explanations when things have gone awry.
I’ve bought Lendwithcare for three people that I can remember. For my young niece as a nicer way of giving her some money, although I hope she’ll never withdraw from the account, for my dad I chose an entrepreneur from Malawi as he’d spent time there many years ago and for someone who I suspect might never have cashed it in. And this is where vouchers really come into their own.
We’ve all received presents we didn’t want. Without wanting to name and shame I’m sure my whole family would understand that we don’t really want to receive any more t-shirts or key rings bearing pictures of holiday destinations. But this present doesn’t get abandoned in a drawer or only worn to bed. Even if that person never looks at it again the money is already in the right place doing its job.
For my birthday last year Helen got me a Lendwithcare gift voucher. So now even though I’ve put money of my own in over the years I now think of her gift every time I get a repayment or have enough in my account to make a new loan. That’s an awful lot of enjoyment already out of one voucher. I’m sure it will carry on for years to come.

This blog has been reposted here with permission from Amy Lythgoe.
Originally posted here

When for my birthday I asked for donations to my charity instead of presents none of my friends or family thought that was such a good idea. To be fair many of them give already but generally people like to give gifts, to pick something out and see it be appreciated. To me the idea of getting donations without painful form filling, standing in the cold or embarrassing ‘asks’ seems like a great gift but for people who can’t see it being spent, see the money making a difference or people enjoying what it provides for them it’s perhaps less rewarding.

With donations as with gifts it’s great to be able to see it make someone happy.

One of my friends, Helen, was listening when I told her about how much I loved Lendwithcare. How not only was the scheme a great concept but one that comes with an amazing amount of consideration and attention to lenders. My enthusiasm for Lendwithcare led me to ask to visit their partner in Manila, something I wrote about in a previous post and since then I have continued to be impressed with the varied and regular updates, enthusiastic blogs from staff and frank explanations when things have gone awry.

I’ve bought Lendwithcare for three people that I can remember. For my young niece as a nicer way of giving her some money, although I hope she’ll never withdraw from the account, for my dad I chose an entrepreneur from Malawi as he’d spent time there many years ago and for someone who I suspect might never have cashed it in. And this is where vouchers really come into their own.

 We’ve all received presents we didn’t want. Without wanting to name and shame I’m sure my whole family would understand that we don’t really want to receive any more t-shirts or key rings bearing pictures of holiday destinations. But this present doesn’t get abandoned in a drawer or only worn to bed. Even if that person never looks at it again the money is already in the right place doing its job.

For my birthday last year Helen got me a Lendwithcare gift voucher. So now even though I’ve put money of my own in over the years I now think of her gift every time I get a repayment or have enough in my account to make a new loan. That’s an awful lot of enjoyment already out of one voucher. I’m sure it will carry on for years to come.

When for my birthday I asked for donations to my charity instead of presents none of my friends or family thought that was such a good idea. To be fair many of them give already but generally people like to give gifts, to pick something out and see it be appreciated. To me the idea of getting donations without painful form filling, standing in the cold or embarrassing ‘asks’ seems like a great gift but for people who can’t see it being spent, see the money making a difference or people enjoying what it provides for them it’s perhaps less rewarding.

With donations as with gifts it’s great to be able to see it make someone happy.
One of my friends, Helen, was listening when I told her about how much I loved Lendwithcare. How not only was the scheme a great concept but one that comes with an amazing amount of consideration and attention to lenders. My enthusiasm for Lendwithcare led me to ask to visit their partner in Manila, something I wrote about in a previous post and since then I have continued to be impressed with the varied and regular updates, enthusiastic blogs from staff and frank explanations when things have gone awry.

I’ve bought Lendwithcare for three people that I can remember. For my young niece as a nicer way of giving her some money, although I hope she’ll never withdraw from the account, for my dad I chose an entrepreneur from Malawi as he’d spent time there many years ago and for someone who I suspect might never have cashed it in. And this is where Lendwithcare Gift Vouchers really come into their own.

We’ve all received presents we didn’t want. Without wanting to name and shame I’m sure my whole family would understand that we don’t really want to receive any more t-shirts or key rings bearing pictures of holiday destinations. But this present doesn’t get abandoned in a drawer or only worn to bed. Even if that person never looks at it again the money is already in the right place doing its job.

For my birthday last year Helen got me a Lendwithcare gift voucher. So now even though I’ve put money of my own in over the years I now think of her gift every time I get a repayment or have enough in my account to make a new loan. That’s an awful lot of enjoyment already out of one voucher. I’m sure it will carry on for years to come.

By Amy Lythgoe

Guest Blog - Ethical Loans Transform Lives in the Developing World

This blog has been reposted here with permission from Owen Knight.
Originally posted here

Joining LendWithCare three years ago was one of the best decisions I have made.During this time, my loan has been recycled four and a half times to a total of twenty-five entrepreneurs in six countries. Together with loans from other lenders, it has assisted people who would otherwise have no access to finance on the journey to work their way out of poverty. The individual loans have enabled entrepreneurs to buy raw materials, stock, tools and other essentials to start or develop their business and take control of their lives, in such diverse areas as farming, food production, general stores, market stalls, carpentry, vehicle repairs and sewing and tailoring.

The wonderful thing is that this has cost me absolutely nothing. With UK interest rates on savings at an all time low, it is a no-brainer to make better use of the money by helping people who want to improve their lives through their own efforts and with dignity.

LendWithCare makes interest-free loans to carefully screened microfinance partners that charge ‘reasonable and fair’ interest rates (or charges) to ensure that loans used are for ethical purposes and offer transparency. Loans are repaid in monthly instalments and, once they are repaid, you have the option of reinvesting with a loan to a new entrepreneur or withdrawing the funds. If you can afford to lend a minimum of £15, you will be making a real difference.

LendWithCare is supported by, amongst others, news presenter Alastair Stewart and Deborah Meaden of Dragon’s Den. The Co-operative was a founder launch partner.

Click here to take a look at the videos on the LendWithCare website, to learn more of their work and the benefits to entrepreneurs. 

You will see why, this Christmas, I have decided to double the amount of my modest loan to a worthwhile organisation.

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Owen Knight

Guest Blog - This Christmas, give the gift of giving.

This Christmas, give the gift of giving.
Posted on 30 November, 2014 by Keith Channing

Hang on; I didn’t mean that.

This Christmas, give the gift of lending.

For some months, my wife and I have been involved, in a small way, with Lendwithcare, a micro-finance organisation set up by Care International, one of the world’s leading aid and development organisations.

Microloans from CARE International UK The premise is simple: an entrepreneur in one of the world’s least affluent areas proposes a business idea to a microfinance intitution (MFI). The MFI approves the plan and grants the requested loan. The entrepreneur is then helped to construct a profile that appears on the lendwithcare.org web site. Supporters (that’s you and I) visit the site, select a profile that interests them, and make a contribution to support it. Once the full amount is reached, it is sent to the MFI, releasing their funds to support another entrepreneur.

As the supported business develops and grows, the loan is repaid, and the repayments find their way into your account with lendwithcare. You can then either withdraw them or, more likely, use them to finance another entrepreneur; and so the virtuous cycle continues.


What’s so great about this? Let me tell you what I think:

My money doesn’t go into a ‘pot'; I choose which individual or group is going to benefit from my contribution, based on a good amount of information about the applicant(s) and the business proposal. It’s personal. Many years ago, I was on an emergency blood donor list. On more than one occasion, when we were called to the hospital for an emergency bleed, we (usually only three or four of us) were introduced to the patient who would be receiving our blood. A cup of tea and a rich cream biscuit never gave that feeling!

The full amount of the loan goes to the desired recipient. There is an (optional) addition of 10% of the amount loaned to help cover the running costs,

It is a loan, not a gift; it can be re-used,

I have often heard the hackneyed ‘give a man a fish and you feed a man, teach a man to fish and you feed a family'; think what happens when you lend a man the money to buy a fishing rod, or maybe to repair or upgrade a fishing boat.

One of the people I have been privileged to support in recent months is a Togo man, married with two small children. He owns a small computer shop that provides office services such as photocopying, word processing and computer training. He also sells computer and office equipment.

He applied for a loan to buy a new photocopier and to expand his business. He is also keen to transform his small shop into a training centre, to pass his knowledge on to others. His ultimate goal is to build up his business so that he will be able to provide a better standard of living for his family.

Like most of the people I have been privileged to support, in many walks of life and across three continents, he is fully funded, and is on target with his repayments. The repayments that arrive in our account are all used for new loans.

What has all this to do with Christmas? Simply this: follow this link to lendwithcare.org, and buy your loved one, your friend, your colleague the gift that, quite literally, keeps on giving – a lendwithcare gift voucher.

Day Three: BBC3's Stacey Dooley returns to Sarajevo to meet more lendwithcare.org entrepreneurs

On her final day visiting lendwithcare.org entrepreneurs in Bosnia-Herzegovina, Stacey Dooley returns to Sarajevo and meets Mediha ...

Stacey with Mediha in her tailor shop in Sarajevo© CARE/Jon Spaull

Today we were back in the capital Sarajevo. I met Mediha, who runs a tailoring and craft shop, a business she started when she lost her job after the war.

Starting from home, Mediha worked hard to move her business into small premises. And now with help from Lendwithcare, she has a thriving business with the equipment she needs.

I could tell how much the loan had meant to her. She said it was the only way to get her family back on their feet after the war and broke down when she talked about the journey she'd been through.

Mediha wanted to thank lenders back in the UK who'd supported her to grow her business and urged them to continue to provide the chance for Bosnian women to start a business of their own.

Although I've only been here a short time it's become very apparent, very quickly, just how important these loans are, with one of the entrepreneurs telling me she literally sees this as the only option for women in Bosnia. Lendwithcare is a fantastic opportunity for people who ordinarily would have no other option. 

And with Christmas around the corner I guess there's no better time to check out Lendwithcare.org and maybe buy your pal or loved one a gift voucher.

Get lending! Merry Christmas :-)

Microinsurance: A safety net for the poor?



© CARE/ Josh Estey



It is becoming widely acknowledged that the provision of financial services to the poor is critical in the fight to alleviate poverty. One such financial service, which has been implemented relatively widely and successfully throughout much of the developing world, is microcredit. However, access to credit alone is not enough to guarantee financial security or stability. After all, microfinance is not just the provision of small loans but the provision of a whole host of financial services and includes microsavings, money transfer and microinsurance as well.

As the recent destruction wreaked on the southern Filipino island of Mindanao reminds us, it is often the poorest groups in our society who are most exposed to risks and without the adequate tools to deal with disaster, the most likely to live perpetually in poverty. One effective tool is microcredit, however as a woman in Zambia explained to Richard Leftley, CEO of MicroEnsure, one tool is not enough: “My life is like this snakes and ladders board (game) … the loans are like ladders, they give me growth. But where are you when disaster strikes?” It is with this in mind that the microfinance community has started to pay a lot of attention to the benefits of microinsurance.

CARE International UK has decades of experience in both microfinance and microinsurance. CARE India, for example, works with Bajaj Allianz to provide comprehensive, affordable insurance policies to over 300,000 people in the state of Tamil Nadu, India. Unlike other microinsurance products sold to poor communities in India, and around the world, Bajaj Allianz – and CARE are offering bespoke, rather than off-the-shelf products, to this vulnerable group of people and the communities themselves are involved in designing the new policies. These policies include a wide variety of cover from death to paying wages during illness.

In addition, CARE has shown that microinsurance does not need to take the shape of formal policies. CARE works with local community groups around the world, helping them organise and finance their own Village Savings and Loans Associations (VSLAs). VSLAs are groups formed by communities that begin by pooling the savings of those involved and ultimately use these savings to make loans to individual members. Last year, CARE helped more than 17 million people improve their household income through village savings and loan associations, access to services and new work related skills. At each meeting, group members pay tiny amounts into an informal social fund, which gets paid out should a member hit hard times – such as covering the costs of funeral and medical bills.

A study conducted on the landscape of microinsurance in the world’s 100 poorest countries discovered that although the world’s poorest were most at risk of financial disruption (whether this is due to illness (including death), property damage (including crop damage/loss) or job loss) they were the least protected against these consequences and that although microinsurance for the world’s poor was growing rapidly, just 1.96% of the potential market were being served. In addition, as Richard Leftley states, this 1.96% is limited to simple credit life protection, which does not always meet the complex needs of a poor household (click here to read Richard Leftley’s paper in full). Health and agricultural microinsurance have been identified as the most pertinent to low-income households, yet these are being dwarfed (particularly agricultural microinsurance) by life protection that is often linked to the provision of microcredit.

© CARE/Josh Estey

However, microinsurance is a new field that is still in its experimental stages and although it is right for the microfinance community to identify a need, we must be careful not to implement it too hastily. Insurance is complex and there are a number of barriers that need to be overcome, not least how it is regulated and who distributes it to the poor, before it can be implemented on a large scale. It is important that microinsurance schemes which set out to aid the poor do just that and do not become too focused on their own expansion in a vast untapped insurance market. The right balance needs to be achieved of creating a good quality product that is affordable. After all bad insurance in the hands of the world’s most vulnerable can only have catastrophic results.

One such way that microinsurance is being delivered trustworthily is through local Microfinance Institutions (MFIs) that are already working with large numbers of low-income households and are often trusted by the individuals and communities they deal with. Lendwithcare’s MFI partner in the Philippines, SEEDFINANCE, is an example of this increasingly common relationship between commercial insurers and MFIs. A year ago SEEDFINANCE started a project called SEADASSURE in partnership with CLIMBS, a leading microinsurance provider in the Philippines, to provide life and non-life (typically property and casualty) insurance coverage to SEEDFINANCE’s clients. Since this project was launched it has provided coverage to 1,138 clients, with a total coverage of 36,525,954.98 Philippine pesos (approximately £540,000).

Microinsurance, like that provided by SEADASSURE, works in a similar way to normal insurance, where clients pay a premium (in the case of microinsurance this will be a low premium to reflect their low incomes) and when/if the client suffers a loss the insurers will compensate him or her a proportion of this loss. So for example, if a farmer’s crop suffers a loss of $100 as a result of flooding, the insurance policy s/he has may cover half of this loss. However, not all MFIs are currently in a position to offer crop insurance and in instances of natural calamities MFIs will often employ their own internal policies to help their clients cope with the effects of disaster. Our MFI partner in Cambodia for example, to deal with the effects of the floods in September last year, suspended any loan delinquency penalties for those who had been affected by the floods and reworked repayment schedules to manageable and realistic ones.     

Like SEADASSURE a number of the microinsurance schemes that are being introduced around the world are still in their infancy and as they start to grow in number and coverage they will need to be monitored closely to make sure that protecting the poor remains their overriding goal. If this goal is achieved then, like microcredit and microsavings, microinsurance can be and will be a powerful safety net for the poor.

By Nancy Thomas, assistant at lendwithcare.org

Christmas for Entrepreneurs Around the World

In Kishasa they sing through the night. In Mexico City, the streets and houses are adorned with bright red flowers that brings luck year round. In Russia, where snow is practically guaranteed, they swap presents at New Year and don’t celebrate Christmas until a week later. So how (indeed if at all) do lendwithcare entrepreneurs celebrate Christmas and how does it affect their businesses? We asked our MFIs exactly this. 

In Benin, Christmas is very popular and is celebrated in all homes, whether Christian or not. It is very much a family occasion. Houses are cleaned and decorated with trees & garlands, presents are exchanged and special meals are prepared from yam and beans to fish or mutton. Father Christmas arrives with presents for the young children and many of our entrepreneuers will visit those in need or alone at this time of year: orphans, prisoners and the elderly.

But the festive season is far from quiet for entrepreneurs. As our ACFB, our chosen MFI in Benin told us: “The celebration time at Christmas is the period par excellence for business in Benin. Trading is intense, especially on the markets selling toys, gastronomy, clothes, shoes, garlands, and ornaments for example. Each stall owner manages to keep on their shelves the products in higher demand by customers both regular and new. The main routes in the towns and countryside are transformed into temporary markets. Usually during this period the majority of ACFB’s clients are rushing to get loans.”

The entrepreneurs funded through lendwithcare live in the south of Benin near the coast, where there are two rainy seasons and two dry seasons; from December to February the air is hot and dry as the dust of the harmattan wind blows across West Africa.

Next door in Togo, weather, business and celebrations are similar. Special dishes are served with drinks such as whisky, coca-cola and a local beer made from millet. Our MFI partners WAGES told us that: “Christmas is one of the most important holidays in the country. Christmas is an opportunity for our communities to do special things such as give beautiful gifts to families and parents like chickens, sheep, cloth, wine, drink cans and bags of rice. This is the time of great reunion and we took the opportunity to reconcile quarrelling members. Best wishes are formulated in those days.”

Depending on their business, it can be the busiest time of year for some entrepreneurs; those that work in bars and restaurants or as tailors, hairdressers and taxi dressers are barely able to celebrate at all. 

As Cambodia is mostly Buddhist, Christmas is not celebrated by most. However, businesses may grow to meet demand from those who do. Across the South China Sea in the Philippines, the opposite is true for 90% of the population belong to the Christian faith, of which the vast majority are Catholic. Here, they lay a claim to the world’s longest Christmas celebrations, as carol singers visit houses as early as September. Religious devotion is central to their celebrations and is perhaps typified by Simbang Gabi – a mass attended for nine consecutive days; a tradition which if completed is believed to result in the wish of the believer being granted. Despite the recent floods in the Philippines (which did not affect the area of the country where our partner MFI is based), the Christmas spirit is kept alive, as SEED Finance told us: “This season of the year is truly an important occasion for all Christians in the Philippines. As long as God’s spirit and guidance is present in everyone’s heart, the Filipino Christmas will always be the happiest no matter what challenges come ahead.”

Closer to home in Bosnia and Herzegovina, Christmas is celebrated by some and not by others; there are a roughly equal number of Muslims to Christians. Many Christians fast but prepare cakes and dishes in time for Christmas celebrations. Christians and Muslims alike visits friends, family and collegeues. Our MFI partner Zene za Zene told us that as Muslims they celebrate two ‘Bajrams’: the two major Muslim festivals that mark the end of Ramadan and pilgrimage to Mecca. They told us that for Christians and Muslims alike:  'For all holidays in Bosnia and Herzegovina peoples are more close and friendly to each other.'

All of our partner MFIs and indeed everybody at lendwithcare would like to express their thanks to lenders in the UK and their wishes of good health, prosperity and happiness to all those who lend their money so generously. Good will and a very Merry Christmas to all!

By Emma Howard, assistant at lendwithcare.org

CARE International UK Chief Executive reports from Bosnia Herzegovina

 


© CARE/Jon Spaull

  CARE UK Chief Executive Geoffrey Dennis writes from Bosnia and Herzegovina where he is with ITN’s Alastair Stewart visiting the latest entrepreneurs to be added to Lendwithcare.

Landing in Sarajevo 19 years after I was last here during the war, I was quite surprised to see a lot of buildings and infrastructure are still in the same poor condition as they were then, some exactly as I last saw them. We travelled to Srebrenica early this morning, which economically and physically appears to still be in a very bad way. Buildings still bear bullet marks from the conflict. The economy of Bosnia and Herzegovina has slowed down considerably, particularly since 2008, and as a result approximately 40 per cent of working age people are unemployed.

Clearly, many families are in a very vulnerable situation. In many cases the head of the house and the only breadwinner is now the mother, as thousands of fathers were killed in the war. Many are struggling to earn a living and a large number are still reliant on food kitchens to keep their family together.

One positive story, however, was a woman we met today. Her name is Nermina. She is now 51 years old and lost her husband in the 1995 massacre. She was left alone with three young children to look after, all under the age of five. In recent years, Nermina has benefitted significantly from education, training and loans through Lendwithcare’s partner and is now able to support all three children with income from a greenhouse and an agricultural smallholding particularly concentrating on chickens.

Lendwithcare gives vulnerable families the opportunity to stabilize their lives - the idea is that individuals in the UK make small loans to entrepreneurs in a poor community. So far 100 percent of these loans are repaid. When you make a loan to a Lendwithcare beneficiary, which I have done several times, you receive updates on a regular basis and repayments on your loan. Lendwithcare has just started operations in Bosnia and Herzegovina; in other countries it has already proved to have an extremely positive effect on people’s lives.

We also met inspiring staff from CARE’s women’s empowerment project and discussed the issue of the sex trade that has affected a large number of young women in this country. I see a really positive link with the Lendwithcare programmes as this will allow affected women to change their lives and start building a legitimate small-scale business as an alternative to the dreadful life they’ve had to lead.

I have now seen Lendwithcare operating in three countries and I’m very impressed with the effect it has- I am a great believer in building self sustainable programmes so people don’t have to continue to rely on organisations like CARE. For a small loan- and I do mean these are loans- the effect is genuinely life changing and they restore the dignity of families who really do not want to rely on handouts.

What a wonderful way to invest in improving the life of a vulnerable family at Christmas time. Every staff member in CARE International UK is making a loan on Lendwithcare this Christmas and many of their family members are doing the same thing. Lendwithcare now offers gift vouchers to make it easy to share this opportunity with others. Please do go to www.lendwithcare.org and you can see numerous entrepreneurs and opportunities to make a loan which really will substantially assist a less fortunate family at this time of year.

While I’m writing this, I’m staying in a boarding house in Srebrenica. We have heard some really sad stories today, particularly relating to the killings that took place here 19 years ago. The last family we visited lived in a still partly damaged house and the weather is well below freezing point. I came away today feeling very sad about the situation for many of the people we met.

But I also feel positive about the difference CARE is making. I am personally going to make two loans for families in Srebrenica this Christmas. This is a really good opportunity to permanently and positively affect the lives of some wonderful people like the ones we met today.

By Geoffrey Dennis, CEO of CARE International UK