STORY
Ahoro Micro Loans: Pioneering a Compassionate Approach to Microfinance
AUTHOR
Laura MilagroLaura Milagro
Joined 2023.11.15
PROJECT
🌱Ahoro.org🌱Ahoro.org
DATE
VOTES
sats
COMMENTS
NOSTR
View on Nostr ↗
TAGS
#activity#discussion#product-people#geyser#legends-of-lightning

Ahoro Micro Loans: Pioneering a Compassionate Approach to Microfinance

Intro

We established Ahoro with strong values and principles to operate from a human and compassionate manner in the financial industry. We aim to lifting a billion borrowers out of poverty, transparently and without controversy. We consider money as the purest form of energy and that's why we decided to adopt bitcoin with its sound money properties, to enable us to transfer this energy where most needed.

To better understand and discover our alternative approach, it's important to understand the meaning of value itself
and the intentions behind our actions. It isn't just about our actions, it's about the final aim that drive them (the why) that we are able to reach the objective as human beings.

We are exploring this topic because we really feel there's a need to change the perspective on the current world, somehow is already happening. We'd like to share the outcomes of our brainstorm, and hopefully have some lightning hitting you (for good).

First,

being good with others,
- instead doing good for thyself
>
Because we hare human-beings
- not human-doers

... and approach what we do with humanistic (instead of capitalistic) objectives.

Support when mistakes happens

(with no punishment nor judgment)

... To create a non-violence and more rewarding financial environment.

# Money is a consequence (not the objective)

... and idea to be kept in mind, for the wellbeing and for the good of people around you.

It's for this main principles that we focus our objectives in Ahoro's training programs are to provoke curiosity in the learner's mind and to stimulate interest in the subject matter itself. This training method encourages participants to be responsible for the degree of learning they desire. It is based on the belief that a person's curiosity enables them to discover their role in the organization and allows them to experience both the thrill of discovery and the satisfaction of meeting a challenge.

We believe that the best way for participants to learn how the credit/debit system works is through exposure and first-hand observations in the field. Through these experiences, participants are encouraged to draw out their conception of the effectiveness of our work and the impact it has on the poorest of the poor.

The core objectives of Ahoro's training programs are:

  • Awaken curiosity

  • Stimulate interest in microfinance

  • Encourage responsibility for self-motivated learning

  • To learn and share with others

  • Determine individual roles in the organization

.

How we deal with Defaults

So one of the questions that a lot of people have had about microfinance --and one of the criticisms that has come up-- is what happens when somebody cannot pay back their loan?

In traditional finance, people who default are at risk to lose the collateral, and in some cases they ended up worse off than they were before starting the loan. We will explain here about how and what Ahoro approach do in these cases and how do we think microcredit should find its best practice in this regard. Be ready!

At Ahoro, we specialize in working with some of the poorest communities, where the concept of business intertwines inseparably with risk. It's crucial to understand that lending bitcoin is not a straightforward process of expecting returns without complications, especially in these contexts. The lives of the poor are fraught with uncertainties; a single minor setback can dismantle their entire livelihood, whether due to political turmoil, natural disasters like floods or cyclones, or personal tragedies such as theft or fire.

Our approach is unique in that we consciously choose not to penalize our borrowers. This philosophy was a foundational decision from our inception. In the conventional financial world, penalties often manifest as increased interest rates or loan denials for those who fail to make timely repayments. We diverge from this norm by not incorporating such punitive measures.

We educate our borrowers on group dynamics and support systems. Initially, many suggest imposing penalties on those who fail to repay. However, we emphasize a different approach: understanding and support. If a member struggles with repayment, the group is encouraged to first seek the underlying cause of this difficulty, rather than resorting to immediate reprimand or pressure. This empathetic approach often reveals that non-repayment is not a matter of unwillingness but rather a consequence of unforeseen and challenging circumstances.

In cases where a borrower's husband may have misappropriated funds, for instance, the community is encouraged to support the affected individual rather than assigning blame. This support might extend to helping locate the spouse and resolving the issue collectively.

Moreover, Ahoro's policy includes adapting to severe setbacks such as natural disasters or business failures. We believe in bolstering the morale of our clients, encouraging them to persevere rather than succumb to despair. In such scenarios, existing loans can be converted into long-term loans, reducing the immediate financial burden. Borrowers are then offered new loans to help them restart, with the understanding that they will continue to make small, manageable payments towards their previous debts.

Our approach also addresses the issue of loan defaults in a unique way. While the traditional banking system might label someone a defaulter for missing a few installments, we understand the complexities behind such situations. Even if a borrower misses payments due to family or health issues, we consider their intent and overall repayment history. This understanding approach, however, does not mean we disregard banking norms. We adhere to standard banking practices, including making provisions for outstanding loans, to ensure full accountability and transparency in our operations.

In summary, Ahoro Micro Loans stands out in the microfinance sector by prioritizing empathy, understanding, and support for our borrowers, especially those facing the harshest of life's challenges. Our methods demonstrate a commitment to both the financial well-being of our clients and the adherence to sound banking principles.

Progress ✅

Since our first updates, we faced some technical issues in our current platform and thanks to the support of various communities in the open source and the financial space we were able to overtake:

🔗 LoL #2 Presentation

  • Presentation Deck available here

  • AdoptingBitcoin2023 Presentation on YouTube

Thanks for reading until here, hope you find it interesting and if you have any thoughts or questions, please do not hesitate to share it below in the comments or directly to us on our website from and via nostr DM on [email protected]