Background

This micro-credit programme operates in the district of San Juan de Miraflores in Lima. The district has a population of around 367,000 inhabitants, with an extremely high population density of 15,310 inhabitants per square kilometer. Of the residents, 6.3% are suffering from chronic malnutrition. Most housing is inadequate and lacks basic services such as water and drainage. The population of San Juan de Miraflores consists largely of people who have migrated from rural areas with very low educational levels. Eight out of 10 heads of homes do not have a primary level of education. The women represent a particularly vulnerable group. Unemployment and under-employment affects at least 50% of the population nationally.

Project Description

Five Talents has joined a three-way partnership with the Anglican Diocese of Peru and the Ecumenical Church Loan Fund (ECLOF) – Peru. Five Talents has offered to provide £20,000 in financing for micro-credit loans during 2006. An additional £6,000 will be provided by ECLOF - Peru to pay for administration of the programme.

The loans are made using the group-lending strategy. Women entrepreneurs are given priority in membership of the so-called Solidarity Groups. Group members receive training before loan distribution and while the loan is in effect. Loans are disbursed in the form of “credit steps” which begin with £150. After full and timely repayment and as the business expands, loan sizes increase. The San Juan de Miraflores programme goal for 2006 is to provide loans to at least 140 entrepreneurs, benefiting approximately 700 individuals and raising the income level per family by 30%.

Invitation

Please consider supporting this programme. Your donation will achieve the following impacts:

• On average one job is created per every £100 loaned.
• Each job supports about six other people, mainly family and relatives
• A donation of £1,000 creates as many as 20 jobs in the first year because the money is loaned out twice (6-monthly loans).
• That means 100 jobs created in 5 years, impacting 600 other people.

More Information

Watch a seven minute film of our work in Peru here.

Erik Josephson, a volunteer from the UK, has been working with our partners ECLOF Peru, and you can read his blog here.

Click here to read the latest report on our work in Peru, or here to read trip reports from Peru and other countries.

Click here to read case studies from Peru and other countries.