The people who borrow
4 November 2009
By Jane Lim, KF9 Mongolia
Today my envy of other Kiva fellows faded because I finally, finally got to meet Kiva borrowers.
There is a certain sadness that most of these borrowers have. For some it’s buried deep beneath stoicism and the victories of subsequent success, but for others it’s brimming at the surface, and you get the feeling that one more slight push would send them into the chasm. When I take their photos, they never smile – and I’ve thought of asking them to, but I don’t want to if there’s nothing to smile about. The truth is, life has been hard for them.
where i went today: the Chingeltey ger district
Kiva lenders may think they are doing a great thing (and they are doing a good thing of course), but these borrowers don’t get the benefit of the 0% interest rate, and to them, they aren’t being done any favors – because who knows what they had to get through to make those repayments back in full and on time, with interest added. They certainly don’t owe anyone anything, and because of that, when I intrude in their lives with a video and a huge camera, I feel somewhat ashamed.
But it’s not all grey of course. So many in the microfinance industry are in it because they hope, as do I. And the borrowers I meet, they do laugh, but don’t necessarily dream. The reality is that for many, loans are required for survival or working capital, not necessarily to step up or make a significant game-changing investment. Consequently, default rates in the microfinance world are lower than those in the mainstream commercial world, because these borrowers need to repay to get the next loan, and the next, and the next. And perhaps that’s why some of them are willing to go on video, get their photographs taken, answer questions… even though they might not necessarily want to – because they don’t want to risk losing their line of credit.
I realize this post sounds a bit morose, only because one particular borrower made such a strong impression on me. Soft-spoken, it isn’t in her nature to fight. But she has to, because she has two young sons to feed – a little red-faced baby was sleeping soundly on the single bed she has, and her other son, no more than 6, was watching a dubbed version of LOTR while doing homework. The downfall of socialism 20 years ago meant the closure of a lot of government-run factories, and she lost her job. So now she sits in her dimly lit ger, sewing grey gloves, hoping to find a mass buyer.
Hers is the sadness that threatens to overflow.
Entry Filed under: KF9 (Kiva Fellows 9th Class), Mongolia, XacBank. Tags: Jane Lim, KF9, mongolia.
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1. Lezli Gibbs | 4 November 2009 at 09:12
Your empathy and respect is apparent in today’s blog. Thank you for your candidness.
2. Suzy Marinkovich | 4 November 2009 at 18:34
Jane- Thank you for being real. We are here to share not just the great stories, but the hard and discouraging ones too. I think this is one of the most touching posts I’ve read on the KF blog. Your heart and feelings shine through in a very real way and I understand and learn from your words. Sending you a hug from Bolivia!!
3. marydear | 4 November 2009 at 20:27
that is a gorgeous shot – when I read the photo caption quickly – I thought it said Chilling-ly versus Chingeltey – I was thinking – yeah it must be freaking chilly – hope you are keeping warm!
4. Jed Goldstein | 5 November 2009 at 01:55
you speak the truth jane and do so in such an eloquent manner. i too feel a bit embarrassed/ashamed when speaking with borrowers because I can see underneath their superficial smiles the real struggles paying back a loan entails. terrific post and beautiful picture. bravo
5. Prem Thomas | 5 November 2009 at 01:57
Wow great photo, i’m glad you made it out into the field!
6. Gavin | 5 November 2009 at 03:56
Jane,
Excellent post. I sometimes feel like we are doing a kind of reality tv of the very poor with prizes being high interest loans. I can get quite depressed about the whole thing. The question , “what will you do with the profit from this loan?” is awfully presumptuous for example. Anyway, I’m very glad that you opened the dialogue with objective candor about a very sensitive topic.
7. Rosemarie | 5 November 2009 at 04:31
Thank you for this very honest and sensitive post.
I have often been struck by the number of people using loans for their childrens’ school fees. This is my hope for the loans I make: that the endless treadmill of grinding, soul destroying poverty from generation to generation can be broken, or at least mitigated, through education and opportunity.
Naive, optimistic? Perhaps, but better to light that one candle to challlenge the dark for people who have forgotten even how to hope.
8. Gemma | 5 November 2009 at 21:31
This is a very affecting post. Thanks for writing about this.
9. Chris | 6 November 2009 at 03:12
Thanks, Jane – that is very enlightening and insightful.
As a donor, I understand the points you have made.
I guess the best answer I can come up with – what is the alternative? Do nothing? Do something else? Continue to do the same things, but differently? As is always the case with complex issues, the answers are also often complex.
10. Kimia | 6 November 2009 at 20:12
Thanks for keeping it real, I enjoyed your post!
11. Kelly KF9 | 7 November 2009 at 08:26
It is such a relief to read what you wrote. I’ve not been able to adequately express this aspect of client visits and Kiva and microfinance or how to translate it to others. Thank you.
12. Jane | 7 November 2009 at 22:08
thanks for the comments! kiva love to all
gavin – you said it exactly right, it feels like “reality tv of the very poor with prizes being high interest loans”.
chris – doing nothing is the worst answer i think. if we all waited for perfect solutions the world would come to a halt. personally, i would prefer it if the MFI gave something to borrowers other than credit – e.g. education, training, business planning skills. there’s a pilot program in Haiti going on which is pretty interesting – http://www.cgap.org/p/site/c/template.rc/1.26.11901/
in the meantime, keep lending! because by providing the 0% interest rate to MFIs, we are freeing up their capital to do something else.
13. coambse | 19 November 2009 at 00:40
Jane,
LIke everyone else said, Moving. Yet I find even with your so well chosen words, we are still left at a loss for how to really describe the experience.
Great Post!
Ed