Small Investment, Big Rewards
Access to a small amount of credit has helped Rose Hernandez gain control over her life.
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| Rose Hernandez, with the assistance of Oxfam partner Las Melidas, has been able to start her own business and support her family. By: Nageeb Sumar |
Rosa Hernandez is thankful she no longer has to work 12-hour days. She and 19 other women participate in an Oxfam-funded micro-credit initiative on the outskirts of San Salvador, El Salvador. With business training and a loan, the 45-year-old mother of three has been able to purchase materials to fulfill her dream of becoming a seamstress and baker and leave her demanding clothes-washing job behind.
Las Melidas is a grassroots organization whose mission is to strengthen the earning ability of poor women in El Salvador. Last year, the organization initiated a micro-credit program to provide small loans to women. Modeled on the Grameen Bank, and with the support of Oxfam America and Grameen Foundation USA, Las Melidas has provided loans to over 600 women in just over a year, while maintaining a repayment rate of 98 percent.
The loan from Las Melidas has helped Rosa increase her income by allowing her to gain flexibility in her hours of work, and increase her quality of life. "As a single mother, I found it very difficult to take care of my children given the time restraints of my old job," Rosa says. "Now I earn a decent living while being able to prepare proper meals and enjoy time with my children." Rosa's sustained income has helped her buy a sewing machine, support her brother who suffers from kidney failure, and provide a better diet for her family.
By participating in the loan program, Rosa also has access to a formal support system of women in her community. Gathering every 15 days, the women recount recent successes and failures of their business ventures, and provide social support for one another. They encourage each other to uphold ten goals which help them gain autonomy, self-sufficiency and self-respect in their local communities.
Rosa and others have now successfully repaid their first loans and are looking to advance their businesses by taking out larger loans from Las Melidas in the near future.