If anyone knows the value of a working toilet, it is Ana.
Ana has been a Montessori preschool teacher for the better part of 30 years, and helping two- and three-year-olds use the bathroom is a big part of her day.
But a clean, safe place to do such business wasn’t a given at the small school she operates out of her home in the Veracruz Mazatepe district of Nicaragua.
“I needed to improve the sanitary condition of my bathroom,” recalls Ana, who feared her young students might be exposed to disease in its current state.
With limited resources and access to capital, a bathroom renovation was out of reach for this committed educator. Then a parent of one of her students told her about MiCredito, one of Kiva’s Lending Partners in Central America.
Ana secured a small loan for concrete, sand, and appliances, and transformed her bathroom for her students and her family. After paying back the loan, MiCredito extended her more credit to make further upgrades to her classroom.
“I have been able to meet my goals and improve the space with all these loans I’ve obtained.”
Safety, economic opportunity, and education
Since 2004, MiCredito has provided financial access to underserved and rural communities in Nicaragua. Like many Kiva Lending Partners, they interact personally with their clients, establishing local offices and traversing the country, sometimes even by motorcycle.
MiCredito’s microlending services are essential to people like Ana, who need help to achieve the basic necessities of clean water and sanitation for their homes and businesses. Without clean water and sanitation, they risk constant exposure to respiratory, skin, and gastrointestinal diseases, which can be fatal.
While government investment has dramatically increased access in urban areas, approximately 50 percent of rural families do not have updated infrastructure, according to the UN Department of Social and Economic Affairs.
In addition to sanitation and construction loans, MiCredito funds educational and entrepreneurial pursuits on the Kiva platform.
Here’s an example. Through multiple loan cycles, Lisbeth was able to start and expand her clothing shop, stocking it with perfume, clothing, and other items that now bring her a stable and satisfactory income.
“When I was younger, I always dreamed of having my own business, but I said, ‘I can’t, I don’t have the capital,’” she says.
“The first ones to support me was MiCredito. They were the first ones who gave me the opportunity.”
Why women?
As with the rest of the Kiva platform, the majority of loans disbursed through MiCredito are to women, who make up 55 percent of unbanked people worldwide.
“Women generally have fewer opportunities than men, so we look for tools that give them the power,” explains Verónica Herrera, co-founder and CEO of MiCredito,
“Women, in particular, do not have property; it is usually owned by men. The lack of collateral is a limitation; it is a barrier to entry into the financial system.”
While women have made headway in politics and actually hold 53.9 percent of positions in national and municipal parliaments, persistent equality gaps remain, especially for women with lower incomes and those living in rural areas.
“If I hadn’t acquired the loan with MiCredito, I think I would be working as a housewife,” says Lisbeth.
“I have learned to be independent, whether my partner supports me or not.”
‘Pay for Everything’
From Ana’s new toilet in her preschool to Lisbeth’s shop to the hundreds of other opportunities created through MiCredito loans, there is no doubt that lives have been improved, and local economies strengthened.
While increasing economic independence through inclusive financial services remains its main mission, the organization recognizes the potential for more. By consolidating not only loan payments but also utilities on its simple app, it helps clients manage their money and simplify their lives.
On the “Pay for Everything” app, people can manage their water, electricity, and phone bills while staying in close contact with their MiCredito representatives.
“We have invested significantly in the technology part…to streamline response times for the client,” continues Herrera, adding that making operations mobile has advanced “the empowerment of the young people.”
She believes it is MiCredito’s ability to adapt its services and responses to its clients that has carried it through the decades, despite Nicaragua’s political unrest and the pandemic, making it one of Kiva’s most enduring and successful Lending Partners.
Explore more MiCredito loans on Kiva.org.
