Loans to women are in fact to men

[Guest]

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[madelaide]

I am always looking for new countries to lend money to. I have noticed however, especially on loan requests from certain countries, that although the loans are made by women, in fact the money is for the husband's business, sometimes to a son. 

Although I have a preference to lend money to women, this is not mandatory for me, but I find it disturbing to see loans like this. Instead of supporting these women for their own efforts, they are being used to raise money for her husbands. The whole family may benefit from this, but isn't this a concern to you? Why can't these men ask for a loan themselves? If it is the policy of certain partners to lend money to women only, the staff is breaking the rule.

Any thoughts?

Regards,
Adelaide

[Dottie b]

Many MFI's aim their marketing to women for several reasons. They have a better repayment record, they tend to use the money for the benefit of the family (as opposed to blowing it on personal items), and, most.s importantly, it enhances their position in the household by giving them more power ande quality. So it is often to the benefit of the woman that the loan goes through her, even though it's for the husband's business.

Dottie B

[Alphecca]

Adelaide:

There was a previous lengthy discussion on the topic, in particular reference to Pakistan, but also a few other countries where a woman often receives a loan on behalf of her husband. It is interesting reading if you go through the whoe thread. This link is to one of the seminal postings about in the middle...

http://www.kivafriends.org/index.php/topic,1212.msg17844.html#msg17844

Alph

[madelaide]

Dottie,
When I first read about microloans, it was targeted to women because they (we!) are in general more responsible. These loans, as I read, were for them to run their own business - in general they were single mothers, divorced women or widows, having to provide for their families on their own.

Alph,
Thanks for the link to the other thread. 

I do hope this helps women improve their position in their relationships, that such loans give them more respect.  I just wonder if this really happens, or if they are simply a tool for their husbands, a means to get a loan they otherwise would not have access to. 

As I said, I don't mind lending to men, but some people do, and I just don't think it's right that a MFI gives misleading information about the loan, or even gives false information (as suggested in the other thread).

Regards,
Adelaide

[Dottie b]

 This is from the KIVA FAQ:

"Microfinance programs have generally targeted poor women. By providing access to financial services only through women—making women responsible for loans, ensuring repayment through women, maintaining savings accounts for women, providing insurance coverage through women—microfinance programs send a strong message to households as well as to communities.

"Many qualitative and quantitative studies have documented how access to financial services has improved the status of women within the family and the community. Women have become more assertive and confident. In regions where women's mobility is strictly regulated, women have become more visible and are better able to negotiate the public sphere. Women own assets, including land and housing, and play a stronger role in decision making.

"In some programs that have been active over many years, there are even reports of declining levels of violence against women." (CGAP)

http://www.kiva.org/about/microfinance#9._Why_do_so_many_MFIs_focus_on_women

Dottie B

[JoanW]

  I too had questions about how "valid" I thought these kind of loans were....the explanation above works for me.  Laws change only after Culture changes - so to give women more real power, they must first get more power in the culture. Since wealth = power...giving them wealth (in the form of a loan) allows them to get more power. 

When our own women did not have any real power, it was because they did not know how business/politics worked. That was because they had never been given the opportunity to learn....a point which too often men of that era failed to consider. Then there were those isolated women who through some quirk of circumstance were able to control their own finances...as one or two did it...three or four followed....until today we don't know it was ever any different. That is where these places are. We are still at the early stages of women's rights in many countries.  Kiva is helping those few in each community to begin to get power by understanding finances and the world of business.  It all comes back to basics - that other Golden rule - "Whoever who has the gold, makes the rules."

[Canadian Here]

JoanW:

How about changing the gender of that pronoun:

"She who has the gold makes the rules"! 

Lorna

[JoanW]

You're right Lorna...I did change that pronoun.

[Canadian Here]

You're right Lorna...I did change that pronoun.

Joan:

But the use of the non-gendered pronoun, "Whoever...", defeats te subject line of this thread about loans being to women and the reasons for this being a positive thing! 

Lorna

[JoanW]

That certainly is one way to look at it.  Another way (and the way it was meant) is that gender should be irrelevant in who does/doesn't have power or wealth. If she has the gold, she gets to make the rules. If he does, then he makes them. Power is not not dependent on (as my godmother used to say) "dangly bits".