How Investours Works

1. Sign up for an Investour. 100% of your fee will be used for the loan given to the borrowers whom you visit.
2. Visit a developing community, meet several groups of women entrepreneurs, and learn about their small businesses
3. After a discussion with your tour group, select a group to receive the loan
4. Track the progress of your borrower group
5. Join our alumni network and continue to be involved with Investours

Frequently Asked Questions:

Why 0% interest?

There is currently a serious problem with microfinance interest rates in Mexico. The larger microfinance organizations have seen profit potential in their loans and are charging very high interests rates often in excess of 70% and sometimes even over 100%. Given the lending climate in Mexico, some non-profit organizations are charging interest rates from around 35-50%. Given the high number of people who have received loans at high or even predatory interest rates, it is important that we counter this trend and help potential entrepreneurs overcome the initial fear of entering into a loan. Additionally, a positive experience with us will encourage loan recipients to use other microfinance services in the future to further increase the size and profitability of their business. Of course, interest-free loans will probably not be available to them from other organizations and for greater amounts of money, but as we only give very small loans, we believe that the educational experience is an important part of the process.

What happens to the group that does not get chosen to receive a loan?

The group that is not chosen during the community visit remains in the program. The choice model is for the education of travelers and loan recipients alike and in no way is punishment for the group that is not chosen. If a group is not chosen by the travelers to receive a loan after three community visits, we provide them with the loan along with business advice.

Why do we only lend to women?

Data collected over the years suggest that women tend to invest more in their family more than men and can thus generate longer term benefits. We have not completely ruled out lending to men, but at this point we have only lent to women.

Why do we lend to groups rather than individuals?

Research suggests that groups are safer to invest in than individuals because it creates social pressure that reduces the risk of default. If one person in the group defaults, then the entire group cannot participate in the program any longer. The goal is that if one person is having trouble making payments, the other group members will step in to assist with payments so that the group can remain involved with Investours.

How do we select loan recipients?

We recruit entrepreneurs with the help of other organizations operating in the same area as well as through community meetings in rural towns with the help of local town leaders. We conduct a screening survey for which the potential loan recipients list how much they need and what they intend to do with the loan. We then check to make sure they are indeed eligible for a loan through home visits, business visits, and individual interviews. Once everyone in a group has been deemed eligible, we can then implement our program, running a tour and disbursing the loans.

How much is the standard loan?

The amount of the loan depends on what the individual need is as well as how many people came on a tour. However, the loans are generally no more than $300 with most around $100-$150 US.

What are the tours like?

View a sample itinerary