I think for any Kiva Fellow the most exciting thing about this opportunity is to meet the borrowers. It’s the desire that we all come into this fellowship needing to satisfy: the need to see, first hand, how this whole thing from borrower in the field to loan analyst in a branch to an MFI’s headquarters to a database to an online systen to a website to a lender that lends $25.00 on Kiva…and the whole cycle begins on the ground with the borrower!
So, you can only imagine how excited I was today about my very first field visit and to add to all the excitement I wasn’t just going to go visit any territory – I was going to Sabra and Shatila (or Wikipedia) Palestinian refugee camps in Beirut. Sabra and Shatila are Palestinian refugee camps in Beirut, Lebanon that have witnessed a horrific massacre during the Lebanese Civil war at the hands of Christian Lebanese Phalangists while the camp was surrounded by the Israeli Armed Forces. During the Lebanese war, the Israeli Armed Forces was at war with the Palestinian Liberation Organization (PLO) in Lebanon.
I arrived at Al Majmoua’s Beirut branch at 10 a.m. this morning. After spending an hour chatting and learning about the branch operations and procedures with Diana, the branch manager, I was introduced to Ismail, an Al Majmoua Loan Analyst. He was going to be my guide for the day. The plan was to go meet 2 new borrowers and check on a couple of existing Kiva borrowers. I had been carefully asked and semi-warned the day before by Nadine that I will be joining Ismail on his scooter or as the Lebanese call it “Motto”. Ismail’s “motto” is probably the easiest and most efficient way to zoom through Beirut’s crazy traffic.
First stop was a new female borrower, Nadia, who alters and tailors clothes out of her apartment on her manual sewing machine. She wants to take a loan from Al Majmoua to buy wholesale fabric. We arrived at her neighborhood in Tarik Al Jadida and were promptly invited up the narrow stairs to her apartment. She welcomed us in and started chatting with us about how she came to know of Al Majmoua. Word-of-Mouth seems to be Al Majmoua’s strongest and most effective marketing tool. Nadia’s sister-in-law is on her 3rd cycle with Al Majmoua.
Watching Ismail conduct the interview and fill out the application process was fascinating. Micro-finance core strengths is that it relies heavily on the reputation of the borrower in his/her community. Ismail was very clear about asking Nadia what amount of money she will be comfortable paying per month in order to figure out her financial standing and which loan would be best for her situation.
Most micro-finance borrowers in Lebanon have little or no financial recording system of their business. For that reason the Al Majmoua application asks the borrower many questions about their current and past financial standing, trying to loosely draw a picture of their business and their needs.
Ismail and I left Nadia’s home and continued on with our visits next stop: Sabra and Shatila. Al Majmoua offers loans to non-Lebanese citizens, any residents with legal standing are eligible for Al Majmoua’s loans. Therefore, they have a large presence in Palestinian refugee camps all over Lebanon.
In Sabra, we passed by several Kiva borrowers: a father and son Al Majmoua borrowers. An electronics shop owner, who’s been with Kiva for more than 5 years, a stationary supplies business owner, and finally we met with Abd. Abd has been with Al Majmoua for more than 9 years; he recently took out his 11th loan from Al Majmoua. He was so happy to see us and offered us snacks the minute we arrived at his falafel stand.
I couldn’t ask for a better introduction to the world of micro-finance in Lebanon. Ismail, who I should probably write a whole separate blog post about, was a wonderful guide. I’m looking forward to more field visits and borrower interactions!