After a sabbatical in Kyrgyzstan, our faculty adviser, Professor Kathryn Anderson, approached the Vanderbilt Microfinance Club regarding a very motivated community in Kyrgyzstan that wanted to obtain a loan to create two businesses: a sewing shop and a bakery.

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The Vanderbilt Microfinance Club acted as a facilitator for their loans as well as a financial adviser for their business plan. This community has been shown to be particularly driven and motivated, as they have obtained plumbing and electricity, while similar villages have been left behind. The bakery is particularly profitable because there are no bakeries in the town of Ak Ordo. All the families bake their own bread, which is time consuming and unprofitable. Additionally, the crafts created in the sewing shop could be scaled up; beforehand individual families had not had enough products to sell in the Osh Bazaar. Examples of the goods produced are dresses, blouses, slippers, and traditional rugs.

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In microfinance, it is important not to make the loan finite. While the loan request was $8000, we provided the loans in increments of approximately $2000, with each disbursement dependent on the timely repayment of the previous increment. This method also allows portions of the loans previously repaid to finance the next segment. This keeps the process more efficient and sustainable.

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Flip through the photos below to learn more about this project.