MICRO-LOANS.

LIGA Mujeres provides interest-free micro-loans to help women living in the small indigenous villages surrounding El Fuerte start businesses.Our microloans are interest-free, thanks to donations we receive for our microfinance program. Our program is based on prerequisites and basic principles that borrowers need to fulfill to receive loans.

Liga Mujeres lends exclusively to women. It has been shown that women are more likely to put generated income toward the benefit of their family’s wellbeing.

We lend to women in groups of 3. This “solidarity model” allows us to lend to women with little or no credit history and no collateral.

Borrowers must complete money and business management classes before receiving their second level loan.

As they move through the process they must present their businesses to a group of volunteers and business people in El Fuerte.

They must invest their loans in their business rather than spend it on other household expenses. By investing in a business, women are able to generate income in order to both pay back the loan and support themselves and their families.

SAMPLE AGREEMENT.

This Loan Agreement is entered into as of ____________/_______ between Liga Clean Water, a part of Liga International a California Non-profit organization and the following team of three equally-responsible for repayment persons (‘borrowers”):

____________________________-___________________ (print name and contact #)
____________________________-___________________ (print name and contact #)
____________________________-___________________ (print name and contact #)

STAGE 1 Liga Clean Water agrees to loan a principal sum of 1,500 pesos at an interest rate of 0% to be repaid at a rate of 125 pesos per month payable once every three months (375 pesos). The full amount is to be repaid within one year. There is no pre-payment penalty.

STAGE 2 Upon payment in full, the team is eligible to apply for a second loan in the amount of 3,000 pesos to be repaid at a rate of 250 pesos per month payable once every three months (750 pesos). The full amount to be repaid within one year. There is no pre-payment penalty. With the

STAGE 3 Upon payment in full, the team is eligible to apply for a third loan in the amount between 5,000 and 10,000 pesos; the full amount to be repaid within one year. There is no pre-payment penalty.

The borrowers agree to:

a. use the full amount of the loan for the agreed-upon business of soap making. The borrowers may add any safe ingredient and any packaging to sell their soap.

b. protect their funds in a safe place, preferably to open a bank account.

c. complete online free business courses to help them develop their businesses.

d. Provide a report to Liga Clean Water once a month vis WhatsApp showing soaps made and sales efforts.

Signed (borrowers): Liga Clean Water:

1. ____________________________ _____________________________

2. ____________________________ _____________________________

3. ____________________________

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