NamasteDirect

NamasteDirect, a project of the Namaste Foundation, is a microcredit non-profit organization based out of San Francisco, California, United States. NamasteDirect is committed to alleviating poverty in rural communities in Guatemala and Mexico. They combine microcredit loans with a personal mentor, business education, and vocational training.

Mission

Fund small loans to first-time borrowers

NamasteDirect funds small loans to first-time borrowers, primarily women, in some of the more marginalized communities in Central America. These loans are used to create or augment a small business such that the borrower can reach economic self-sufficiency for herself and her family. NamasteDirect raises money from private donors and foundations, and channels these funds to established, well-managed microcredit organizations, initially in Guatemala. NamasteDirect makes such grants primarily as an incentive to serve first-time borrowers in rural areas who would otherwise not have access to credit services.

Create a connection between donors and borrowers

In order to strengthen the connection between donors and borrowers, NamasteDirect provides feedback and information to donors about the specific destination, use and impact of their funds during the course of the loan cycle.

Nurture and train a new generation of philanthropists

NamasteDirect encourages involvement of a younger generation (target ages 20-35) in the field of microcredit and international development through various opportunities, including board membership and a fellowship program that provides a unique and powerful opportunity for students to travel to Guatemala and learn first-hand about microcredit as a form of bottom-up international development.

History

NamasteDirect grew out of a program of the Katalysis Partnership, an organization that Bob Graham founded in 1984 and that recently transferred full ownership of its institution-building program to the Katalysis Network of Central America. The Network is now headquartered in Honduras and is run by its Central American NGO members. In September 2004, Bob Graham founded NamasteDirect with the intent of continuing to support some of the smaller organizations of the Katalysis Network, specifically those that still depend on grant money to reach some of the more marginalized and harder-to-reach rural microcredit borrowers.

Since its founding, NamasteDirect has funded microloans to capitalize the tiny enterprises of over 4,000 women in rural communities of Guatemala and Chiapas, Mexico. The implementing organizations are FAPE (Foundation for Assistance to Small Enterprises) in Guatemala City, Puente de Amistad (Friendship Bridge) in Panajachel, Edubanco (Care) in Chichicastenango, CES in Nebaj, and AlSol in San Cristobal de las Casas.

Partner Organizations

FAPE (Fundación de Asistencia para Pequeña Empresa)

Guatemala City, Guatemala

Number of clients: 3,300 (92% women)

Started in 1984 with a small amount of seed capital, FAPE supports micro-enterprise development in the most marginalized communities. A change in leadership three years ago brought about a more focused and professional approach to microfinance, and the organization has methodically built its financial and management capabilities since then. FAPE is now an important part of a thriving microfinance community, serving a vital role by reaching out to under served communities in rural areas of Guatemala. Its methodology is primarily group lending through a model called Bancos de Mujeres de Confianza ("Banks of Trustworthy Women"), although as of recently FAPE also offers solidarity group loans and individual loans. FAPE’s loan repayment rates are on the order of 95-97%.

Edubanco (A project of CARE International)

Chichicastenango, Guatemala

Number of clients: 1,695 (100% women)

The EDUBANCO project provides microcredit loans and seeks to support elementary education for borrowers' children. Women receive discounts on loan interest if their daughters remain in school. This project seeks to empower women and their daughters simultaneously by supporting women's economic opportunities and girl's education, helping to address the education gender gap in Guatemala. CARE collaborates with the Ministry of Education, local partners, teachers and associations in implementing education reform and strengthening the quality of primary education.

CES (Soluciones Comunitarias)

Nebaj, Guatemala

CE Solutions was founded in May 2004 by former Guatemala Peace Corps Volunteers Greg Van Kirk and George B Glickley. Upon completing their two-year commitment in April 2003, Greg and George decided to stay on to complete "unfinished work". The CE Solutions team works to transfer both knowledge and resources to local individuals so that they can improve their quality of life and of those of others in their community. Their success is derived from creating practical, low cost and flexible solutions that address real needs and offer compelling opportunities. CE Solutions conducts extensive analysis to ensure that the designed solution and implementation mechanism is one that is appropriate for the local environment and constituents.

AlSol (Alternativa Solidaria)

San Cristobal de las Casas, Mexico

Number of clients: 14,020(100% women)

Since 1998, AlSol has been working to provide financial and social services to the poorest women in the state of Chiapas so that these women and their families can improve their standard of living. AlSol follows the Grameen methodology and makes its loans to solidarity groups of three to five women. Using an integrative approach, AlSol aims to address various facets of extreme poverty, including lack of capital, illiteracy and malnutrition. In addition to its microcredit program, AlSol offers life insurance and educational programs for microcredit borrowers and nutrition programs for their children.

Puente de Amistad (Friendship Bridge)

Panajachel, Guatemala

Number of clients: 14,460 (100% women)

Working in Guatemala since 1998, Friendship Bridge is committed to reaching the poorest areas of rural Guatemala and providing credit and education to women (primarily Mayan). Topics on business development, self esteem, and women's health are delivered through regularly scheduled repay meetings. In addition, in an effort to support clients desires to enable their children's education, Friendship Bridge offers scholarships and school supplies to thousands of children, and operates a children's learning center in the remote village of Nebaj.

NamasteDirect and NamasteGuatemaya's new approach to microcredit

Namaste Business Training with Microcredit: NamasteDirect's newest program combines credit and capacity building. It has been designed to better support women entrepreneurs, based 100% on requests from the women. This scalable model is intended to increase the likelihood of micro-credit borrowers moving out of poverty. Each client will have the opportunity to work with a personal business mentor during their loan cycle. The women will all participate in formal business education and a vocational training course.

References

United Nations Department of Public Information: "International Year of Microcredit 2005" [1]

External links

• NamasteDirect ~ Ending Poverty One Loan at a Time
• Friendship Bridge
• Katalysis Partnership
• AlSol