Building LO’UD a frame at a time!August 22, 2022
Tais Listed on UNESCO’s Intangible Cultural Heritage ListSeptember 10, 2023
LO’UD Community Bank
By the community, for the community.
In response to the economic slowdown caused by Covid, LO'UD started a strongly governed program in 2020 called 'Haforsa Familia Liu Husi Desenvolvimento’, which translated means 'strengthen families through development'. This absolutely brilliant initiative is like a community bank, specifically designed by LO’UD members, for members and their families.
It's a simple concept - members who invest $100 each (there were 35 people at the start) receive a very small payment on top of what they invest at the end of the year. Members who borrow are charged a very small fee each month, which is returned to investors at the end of the year.
The governance and regulations are both clear and comprehensive and include rules around membership (you must join to be involved), process, timelines etc. The books are open to members at any time, and the management processes are excellent. The most impressive part of the program is how effectively it supports both the borrowers and investors. The fees are kept very low, much lower than similar programs and local banks. For investors, the returns are higher than returns from the local banks, and of course, the social returns are rewards that in this case, money can buy
We are so very proud and inspired by these innovative LO’UD women and their families!