John Hatch happened upon a novel idea. His idea was something called "village banking. " This system is a means of investment using small loans to poor women to finance their own private enterprise, e.g., selling produce, crafts, etc. This arrangement allows them to create savings while paying interest and thereby qualifying for larger loans. The first thing that the villagers did when they received this money was buy land. Hatch says he created the system in order to channel money to the poor, primarily the mothers of children who would otherwise starve to death. The women have a loan repayment rate of nearly 100 percent.
John Hatch happened upon a novel idea. His idea was something called "village banking." This system is a means of investment using small loans to poor women to finance their own private enterprise, e.g., selling produce, crafts, etc. This arrangement allows them to create savings while paying interest and thereby qualifying for larger loans. The "village banking" system has grown to nine countries. Hatch says he created the system in order to channel money to the poor, primarily the mothers of children who would otherwise starve to death. The women have a loan repayment rate of nearly 100 percent.