The Face of Microfinance in Guatemala

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Last Updated on April 22, 2024 by Audrey Scott

When Guatemala City and the town of Totonicapan both wound up our itinerary, several Guatemalans we spoke to wondered aloud: “Now why exactly are you going there again?

Faces of Guatemala, Microfinance
Faces of Microfinance in Guatemala

Usual suspects on the Guatemalan tourist trail these places are not. The primary reason for our visit: cooperation with Kiva, an American organization that raises capital for small loans from online lenders. It then disburses the funds to borrowers in the developing world via its partnerships with local microfinance institutions. Individuals lend small amounts (e.g., $25) over the internet, and collectively they help to impact the lives of many. Innovative, and — as Kiva describes it — “person-to-person.” (You can read more about microfinance and how it works here.)

Our contribution was to photograph Kiva borrowers (i.e., individuals who had received small loans). Working with volunteer Kiva Fellows, Andrea and Lori, we got to see first-hand the effect of loans distributed through Kiva's partner microfinance institutions (FAPE and ASDIR in Guatemala City and Totonicapan respectively).

Mother and Daughter - San Pedro Sacatepequez, Guatemala
A mother and daughter moment.

The project took us to villages outside of Totonicapan and a host of areas outside of Guatemala City, including a slum in Villa Nueva. We met a select group of women – and one man – using small loans ($1,000 or less) to build or expand their small businesses. They weaved, sewed, crafted shoes, baked goods, made candles and ran stores. In their homes and workshops, they shared their stories, their lives, and their goals.

Here are just a couple of those stories.

A Weaving Business Inside the Family Home: Totonicapan, Guatemala

The image below captures the interior of a family home outside of Totonicapan in the highlands of Guatemala. The space measures somewhere between 150 and 200 square feet: a TV workspace in one corner, a bed in the other, a small table, and some knick-knacks hung on the wall. A husband and wife and their two children live there. Look closely and you'll notice a large weaving loom – the purchase of which was aided by a Kiva microloan – taking up half the space.

Working Space - Totonicapan
Living and working space together.

When we visited Juan and his family earlier this year, he had successfully sold his first batch of hand-woven traditional cloth (or traje) at the market.

Candle Workshop Outside Guatemala City

Although only one person received a Kiva loan for the candle workshop above, the entire family benefits. In the shelter of bamboo and corrugated tin, several generations work together cutting string for wicks, dipping them in pots of hot paraffin, and arranging the candles to dry.

Microfinance project in Guatemala
A fisheye image of a family candle-making facilities in a village outside of San Pedro Sacatepeque in Guatemala.

After giving us a tour of her candle workshop, the Kiva borrower — a young mother named Magda — proudly showed us the plot of land where her family home would soon be built.

While the photo sets linked below don't offer traditional snapshots of travel in Guatemala, they do provide a glimpse of how people live in small towns and villages. Ultimately, these people hope to support their families, improve their lives, and provide an education for their children.

And after all, isn't that what we're all trying to do?

Smiling Guatemalan Girl
Smiling Guatemalan Girl.

Photo Set: Microfinance Around Guatemala City

Photo Set: Totonicapan and its Environs

About Audrey Scott
Audrey Scott is a writer, storyteller, speaker and tourism development consultant. She aims to help turn people's fears into curiosity and connection. She harbors an obsession for artichokes and can bake a devastating pan of brownies. You can keep up with her adventures on Twitter, Facebook, and Instagram. And you can learn more about her on the About Page and on LinkedIn.

9 thoughts on “The Face of Microfinance in Guatemala”

  1. Beautiful photo set. I was excited to see that you were visiting some of the Kiva loan sites. I thought that perhaps you might have visited one of the businesses that I loaned money to through Kiva.
    Juana Azucena Lopez in Villa Nueva.

    Then I saw FAPE has 145 loans! The odds weren’t too good on that.

    Thank you for the great pictures that help give everybody a more in depth view of whom Kiva is helping.

  2. @Jason: No, we didn’t visit Juana in Villa Nueva but we did visit one of her fellow borrowers, Julia Liliana. I imagine the stories are similar. Through a series of small loans Julia has been able to put herself through two years of baking school, begin a baking business, start a sewing business and her next plan is to create a day care center for working moms. Her businesses have started to employ a few local women, too. And, this is all within her home. She was so optimistic and excited about the possibilities for the future. A great visit.

    One thing I learned from talking with the Kiva Fellows is that loans usually get funded within days (sometimes in less than 30 minutes!). The simplicity of the Kiva’s system works – they’ve been able to tap into generous lenders like you who want to do something with their money. It’s pretty incredible.

    @Bernie: Glad you enjoyed this! We hope to bring you more Kiva-related pictures and stories from the rest of the region.

    @Dee Dee: Good eye – she is really expressive, isn’t she? That photo captures her spirit well.

  3. This is great. I just stumbled upon your blog and love it. I just started giving through Kiva and love to see how you’re getting involved it. I’d love to be in your shoes!

  4. @Kevin: Glad you found us and are enjoying our blog. And, congrats on being a new Kiva lender. The transparency and low overhead of Kiva’s system are pretty incredible – it’s been pretty cool to see all sides of the process. We hope to cooperate with Kiva throughout this region, so keep checking back for more updates and photos.

  5. I love this. Great photos and a great story. I’ll be looking into how I can get involved with this. It’s amazing how what seems like a tiny contribution to us can completely change someone’s life.

  6. @Sky: Definitely give Kiva a look. And in general, Guatemala has a lot of NGOs to choose from if you’d like to get involved. The trick is just doing your research to see what fits with your interest.


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