Palccaraqui Group

Lucas, the group leader, is 52 years old and has 7 children with his wife. He is an elected official in his town, and was recently reelected for a second term to serve in the mayor’s office. Lucas works as a bricklayer part-time, but also runs his own fireworks business. With his loan, he plans to buy powder to make the fireworks for local parties and events. A 14 kg bag costs about 300 soles (approx. 100 USD). As group leader, Lucas makes sure that group members are accountable for making timely payments.

Irma is 43 years old, married and has 4 children. She runs her own restaurant near the main square in Urubamba. She will use the loan to purchase supplies and food. Every Wednesday she spends 300 soles to purchase sodas and other bottled drinks from a regional distributor.

Ivan is 20 years old and drives commercial vehicles to distribute food and building supplies throughout the Sacred Valley. It took him two years to receive his commercial driver’s license after passing driving and written tests. With the loan he hopes to buy extra goods that he can transport on the vehicles and sell for extra income. He currently works for a local transport company, but hopes to own his own truck one day.

Palccaraqui is grateful for the loan. They have been working with Asociación Arariwa for over a year, and are familiar with the loan process and repayment schedule expected of them. Members guarantee each other in groups of 3 to 4 people to hold each other accountable.




About Group Loans
In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a group guarantee. Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults. Learn more