Mission Asset Fund (MAF) staff and client meeting.
By Stephanie Presch, Content Specialist, UnidosUS
Alicia Villanueva came to the United States in search of a better life for herself and for her children. When she arrived in the United States, she wanted to start her own business selling tamales, but lacked the funds necessary to get it set up.
Villanueva had participated in lending circles back in Mexico, so when she saw a flyer for one being offered at UnidosUS Affiliate Mission Asset Fund (MAF) in San Francisco, she decided to sign up. The money from the tanda helped her pay bills, her car registration, and invest in starting a business that could support herself and her three children.
The concept of a lending circle did not originate with MAF. In Mexico, they are known as tandas or cundinas. In Brazil, they’re known as pandeiros. In West Africa and the Caribbean, they’re called susus. And in Asia, they’re known as hui. In all cases, the concept remains the same—a group of people coming together to lend money to each other.
Lending circles at MAF typically use payments that range from $50 to $200 a month, and are formed between 6 to 12 people. Each month, the money that people in the lending circle contribute is given to one member of the group. The cycle repeats itself every month until each person in the group has received the money.
