In other news, I've finally found the main Tegucigalpa office on Google Maps. I tried to embed the image into the blog but it doesn't seem to work so you'll just have to click this link:
http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=prisma+Microfinance,+tegucigalpa,+honduras&sll=14.071979,-87.196426&sspn=0.303714,0.572662&ie=UTF8&t=h&ll=14.082672,-87.193648&spn=0.002373,0.004474&z=18.
Here's a picture of the office:
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| From Honduras |
I'm still in search of my house here on GoogleMaps and when I find it, I'll be sure to post the link.
Anyway, between today and yesterday, I've learned more about Prisma and especially about Kiva. First, let me correct my last entry: Kiva lenders cannot profit from interest on the loans they give through the site. A Kiva lender can only hope to get their initial investment back. When I found out that I was mistaken in my previous entry, my first question was, "then where does the interest go?" It turns out that Prisma is allowed to keep all of the interest earned on the money lent (which is usually 30%). Sounds really high, right? Although I cannot say that I totally agree with such a high rate, click here to read Kiva's explanation of the rates many of its "field partners" charge.
I can say that the partnership with Kiva is a pretty sweet deal for Prisma. They get the interest without risking their own money! The only downside to this comes in the case rampant inflation because Prisma has to pay back the Kiva lenders in US Dollars. Right now, the Honduran Lempira (HNL) seems to be pretty steady at about 18.9HNL = 1 US$ but this blog entry by a Kiva "Fellow" gives a good example of how the field partner could have trouble repaying loans because of currency fluctuation.
I also found out that almost all of the loans that Prisma gives to support groups (groups of people in a similar industry or area who wish to receive a loan together), to individuals for their businesses, or for housing improvements are done through Kiva. On average it takes 1.5 days after the request is posting to receive funding. One of the most interesting concepts is that the funding is comprised of small loans from individuals around the world. Currently, the average loan amount granted through Prisma Honduras is $443 and the average loan term is 9.42 months.
Just for fun, I wanted to put pictures of people who work at Prisma on the blog, so here's Ángel who opens the gate and "pats down" people coming into the office.
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| From Honduras |
The bike actually belongs to Prisma and they let the loan officers use it to visit clients. Motorcycles help them because they can weave through the horrible traffic in the city and each officer has about 300 clients!
Outside of work, I joined a gym yesterday. The gym is owned by the 2006 Central American body building champion. Apparently he likes to practice his English so he has named the place, "God's Gym" and has littered the workout area with pictures of himself and phrases in English like "Champion." As funny as it sounds, the gym works out (no pun intended) just fine because it's close to the house and, that way, I can go before or after work. I'm planning on going in the mornings around 5:30 because that's when the parrot next door starts to sing and that way I don't have to worry about staying too late into the evening and walking back in the dark. It's only about $25 a month and I practically have a personal trainer, I wish I could find a deal like that in the U.S.! Heck, I wish there were trainers who only charged $25 and hour!
Tomorrow I'll get to go to the Pedregal Office with Roberto, who will be my main keeper while I'm here. I'll hope to give you an update soon!
