Women's Microfinance Initiative Corporation

WMI provides village-level access to credit, training and support for poor, rural women to develop their own enterprises and establish solid financial track records. WMI's model ( unique among other micro-lenders) transitions borrowers from local microfinance into mainstream banking after 24-months - harnessing their business success in the WMI loan program to command competitive rates and conditions from institutional financial service providers. Demonstrating our borrowers “bankability" reduces risk, which increases interest from more traditional banks to access these new customers and begin to penetrate rural markets. By providing training/education, support and credit in areas with limited-to-no banking services, WMI promotes women's economic participation in poor, rural areas of Eastern Africa. In addition to income generation, borrowers accumulate assets, improve household living standards, and spur local economic development by hiring employees and creating community wealth.

WMI's comprehensive loan program, The Transition to Independent Banking Program, offers impoverished, rural women four successive interest-bearing, six-month term business loans (collateral free), ranging from $50-$250, in a highly structured environment. Borrowers in 20-member solidarity groups cross-guarantee each other's loans. They receive skills/ business training, peer mentoring, on-going technical support and on-site follow up. WMI works with each borrower to prepare a simple business plan that provides a roadmap to reach her economic goal. Group activities allow the women to practice business promotion skills/techniques. WMI provides notebooks, pencils and calculators so the women can track of their business finances. Local Coordinators visit all of the borrowers on a rotating basis, assisting them with book keeping and solving business problems. Bi-weekly loan collections are funneled to the head coordinator who makes the bank deposit or to a mobile banking van provided by the banking partner.

After 24 months, WMI borrowers have developed a solid track record of business operations and financial management and transition to bank loans issued by WMI's partner banks. WMI continues to provide training and support services. The funds repaid to WMI by graduating borrowers are then recycled to provide loans to first-time borrowers entering the program, making the program self-sustaining. Each WMI loan hub location is administered on the ground by the borrowers through a registered community based organization (CBO). Loan interest supports all local operating expenses.

What distinguishes WMI and makes it successful is that our model:

Is structured to become financially self-sustaining;

Leverages an existing village social network to amplify outcomes;

Demonstrates a proven track record of returning dramatic social impacts with minimal resources;

Provides village-level access to capital and skills training;

Offers a unique program for 'graduating' borrowers to formal banking services (providing borrowers greater diversity and levels of capital, an opportunity to establish formal credit profiles, and access to multiple paths to success); and,

Is run locally by the women borrowers, thus not requiring a permanent “aid" presence.

WMI's seventeen-year track record and the outcomes to date have been significant. WMI has collected extensive data that substantiate loan program impact – incomes double within 6 months; household savings rates increase; and living standard improved. While these are significant, immediate impacts, evidence shows that long term (4 year) outcomes are even more encouraging and demonstrate that WMI is having a long-term sustainable impact on poverty reduction. Equally as important, WMI is shifting the power center from the banks to the villages by harnessing pent up rural demand for credit which will drive the evolution of better banking products and better access to financial services for the poor. 28,500 women who would have been denied access to credit are now WMI's customers.