Community Loans

Most of our families would not qualify for regular microfinance because they are too high risk, lack legal paperwork, or are unable to start or run a business because of psychological problems.

We have developed three types of community loans to meet the needs of our families: business, training and emergency loans. These loans, with a simple 10% annual rate and monthly repayments, come with close supervision and screening.

For families and young adults, our business loans of up to US$200 come after we have helped them develop a business plan. For larger amounts, Riverkids will use a microfinance lending institute. After the loan is disbursed, we continue to monitor the new business, supporting it with skills and business training wherever needed.

Our emergency loans are for health crises or to buy out bad debt. Moneylenders can charge up to 1200% annually in the slums as many will default and have no assets – except their children. By buying out bad debts before they can rollover into enormous sums, we have been able to prevent child trafficking. This requires close monitoring to make sure the family does not go on to rack up more debt. We have used in-kind labor and staggered payments for families struggling to repay even modest loans.

For adults in our families, we also provide vocational training and education loans, as children are completely covered by Riverkids.

Thanks to our community loans, families are now running their own businesses and we have been able to directly prevent child trafficking and exploitation.

Community Loans