Approaches vary widely among organizations offering microfinance loans to the world’s poor. At the local level, Opportunity International lending programs are organized into Trust Groups — collections of 15 to 40 clients who jointly guarantee the group’s loans and meet weekly with a loan officer to repay their loans and receive training in essential business practices.

Yet, true to its mission, Opportunity International infuses more than money into the equation. In Trust Groups, clients experience social and spiritual transformation in addition to economic empowerment. This happens naturally in the weekly meetings, as members address everything from increasing their profits and managing their employees, to raising their children and learning to pray.

Because Trust Group members support each other and guarantee loans as a group, Opportunity International enjoys loan-repayment rates of about 98 percent, better than the average for commercial loans in the industrialized West.

The Cycle of Empowerment

Trust Groups foster growth that extends beyond the individual members to their families and communities. Picture this cycle:

For the first time, a financial institution extends trust to a group of hardworking poor in one village who have initiated a group loan. This boosts their confidence in their own skills and dreams.

As their small businesses grow and that initial loan is repaid, each business can diversity and hire more employees. Thus, clients improve their standard of living and that of others.

This growth brings personal dignity and hope, as well as respect from relatives, neighbors and community members.

Respect increases as women clients take on leadership roles that are typically relegated to men in their culture: president or treasure of the Trust Group, or community activist.

Overall, Trust Groups offer peer support and accountability, affirmation, and valuable training for business as well as life to many who previously had only an informal education and few marketable skills. Trust Groups transform lives.