Microfinance

For years, Lanie, a general store owner in the Philippines, had tried to pay for her child’s college tuition with the hopes of providing her a better education and life; but she couldn’t do it on her own. Exeter Microfinance Club, an ESSO club that offers fiscal support for struggling individuals across the globe, provided the boost Lanie needed—a small loan—and it changed Lanie and her family’s lives. Since then, Lanie has fully paid back her loan, successfully expanded her business and attained financial stability. However, Lanie is only one of the many individuals whose lives have been transformed by Microfinance.

Meeting every Thursday at 7 p.m. in room 319 of the Academy Center, Exeter’s Microfinance club typically lends money to those who are in need of economic support. As their loans are always fully repaid, according to upper and co-head of Microfinance Jun Park, “Microfinance is about giving people who do not have the resources a chance to become self-sustaining individuals.”

In a typical Microfinance meeting, the members gather around a Harkness table and discuss potential loanees. The club operates through a site called Kiva, which is essentially a crowdfunding site. Stories of various loanees are posted on Kiva which Microfinance sifts through in search of interesting loans. With a set amount of funds to loan out, the club tries to find loans which have a seemingly higher probability of being repaid. So far, according to Park, every single one of their loanees have paid back, signifying the successful impacts of each and every loan.

ESSO, along with similar community service programs, typically discourage the use of money to help others. Microfinance is no exception. The difference lies in the fact that Microfinance does not give money: it lends money.

Upper Cam Rider, one of the members of the club, commented on the efficacy of the program. “Using loans, rather than just giving away the money, gives us the chance to keep putting money into the system and ensures that loanees are responsible with their money,” he said.

Upper Moonlan Zhang, another member of the club, added, “[Microfinance is] sustainable. People [are] receiving loans [to] learn to be independent.”

Many ESSO clubs on campus are purely focused on raising awareness. Microfinance, on the other hand, is unique in that it is the only ESSO club that provides monetary aid to people who need it. Park said that he was attracted to Microfinance for that exact reason: “What we do has a direct impact on the lives of many individuals.”

Other club members joined for similar reasons. With just 45 minutes every Thursday, Microfinance is able to improve peoples’ lives drastically. Although the monetary amount doesn’t seem like much to most people, to the loanees, it’s the difference between profit and bankruptcy, success and starvation.

“We consistently send out loans of $100 or more to these people, which is often the equivalent of their year’s salary, so they can expand their income,” Rider said. “Increasing their revenue allows us to support their needs and spread wealth throughout the nearby area.”

Still, some enjoy the globalness of Microfinance the most as it reaches out to individuals all over the world. Co-head of Microfinance Brooks Saltonstall said, “[Microfinance] gave me a chance to get a glimpse out of the Exeter bubble once a week. I really appreciated that.”

Senior Michael Tuchler agreed with Saltonstall. “This club allows students to have an impact not just within the Exeter bubble or the region, but around the entire world. [It also] allows for the cheap and effective stimulation of economies around the world.”

“Using loans, rather than just giving away the money, gives us the chance to keep putting money into the system and ensures that loanees are responsible with their money.”

Not only is Microfinance’s impact ever-growing, but its club membership is doing the same. Park and Saltonstall explained that when they each joined Microfinance, the club had no more than four consistent members. Now, under the leadership of Saltonstall and Park, the club has a steady core of around fifteen members at each weekly meeting.

Saltonstall attributes the increase in members with the friendlier environment he has created as co-head. When he first joined as a prep, the club was very serious and business-like. Saltonstall and Park changed that. At the start of every meeting, Saltonstall and Park lead introductions and name games, emphasizing the importance of a friendly dynamic between club members in maximizing the experience of each student.

“I feel that Microfinance works best when we use the Harkness method. Thus, it is very important to have a conversational relationship with everyone around. Part of that is knowing everyone's name,” Saltonstall said.

In addition, the club has started a tradition of assigning a member in the club to be the “Snack Mom” each week. With the food and friendly environment, Saltonstall said that the club has attracted many more members, which was his original goal.

Still, the two co-heads consider expansion to be one of their top priorities. One way the two co-heads hope to increase their club membership is through increased publicity, namely via club gear. Park said, “For the first time in our club’s history, we organized club gear. We thought it was a fun way to bring the club together and also get more people wondering about Microfinance.”

To create a bigger presence on campus, the two co-heads plan to start small-scale events to raise public awareness, another important aspect of non sibi.

Park not only wants to get more students involved with Microfinance, but also strives for a more diverse group of students. Currently, the club consists mostly of males and upperclassmen. Through a greater variety of members, Park hopes to enhance all the club members’ experiences. “Since Microfinance is a club which revolves around discussion, I think that having a greater variety of students would be helpful in harboring a meaningful conversation.”

With plenty of snacks for newcomers and time set aside for introductions every week, Microfinance welcomes all Exonians to join them in non sibi venture—their quest to help others.

There are people in need and loans to be made. Microfinance provides that. Its process is simple, while its effects are exponentially greater. Microfinance is a true embodiment of non sibi, changing individuals’ lives one by one. “By participating in this system, we create many more opportunities for farmers, grocers and others to enjoy the benefits of micro loans,” Rider said. “For years, we’ve created a global impact by loaning out thousands of dollars every year.”