Salomón Raydan

Ashoka Fellow
Venezuela
Fellow Since 2000

Citation

This profile was prepared when Salomón Raydan was elected to the Ashoka Fellowship in 2000.
The New Idea
Microcredit is not a new phenomenon, but Salomón's methods are. In the traditional model, loans are granted to low-income individuals organized into borrowing circles, in which accountability is assured by group responsibility–if one member does not repay her loan, the entire group is held responsible for its repayment. In Salomón's model, in contrast, accountability is ensured because the funds from which community members borrow are their own.

In more traditional models, the capital and the rules for borrowing come from outside institutions. In Salomón's communal banking model, members supply the capital for loans and set their own lending rules according the best interests of the community.

Salomón links the various community banks into a network, which allows growth and promotes the idea more broadly. The network promotes transactions between banks and permits funding and services from external sources and corporate banks. Salomón is also developing additional financial services, including insurance to pay off loans in the event of death and health insurance.
The Problem
The Strategy
The Person

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