San Juan Ollantaytambo Group
The group is now entering its first cycle of Phase II, for which it has invited four new members to join the group. All of the group members are from the same area and know one another well. Almost all of them work in agriculture or raise livestock, with the exception of the group’s president, Sra. Silvia, who is a schoolteacher in Cusco, and Marina, who sells clothing. Most of the group members speak Quechua (the primary indigenous language of Peru) as a first language, which is common in the countryside in the mountains. The group’s loan officer, Alfredo, also speaks Quechua, and conducts group meetings in a mix of Quechua and Spanish.
The group meets in Paulina’s home, which is located right next to the train tracks; each day dozens of trains pass by, taking tourists to and from Machu Picchu. Paulina is 43 years old. She has a family farm, where she grows corn, potatoes, squash, and wheat and also has eleven cows. She buys the cows young, then feeds and fattens them, and finally sells them to buyers who sell the meat in Lima.
Paulina is requesting a loan of 500 soles, which she plans to use to buy guinea pigs and chickens to raise. Guinea pigs are a Peruvian delicacy and relatively lucrative to raise, though they require a lot of care and attention to keep healthy. She buys each one for 15 to 20 soles, and can eventually sell them for twice as much. Chicks cost 15 soles for a pair, and after three to four months Paulina expects to sell them for twice as much. The group has pledged to repay its Kiva loan in full and on time.
Note: Two of the people appearing in the group photo are not members: the girl on the far left is the daughter of one of the group members, while the man seated on the ground in front is the group’s loan officer, Alfredo Lopez.
Important InformationAbout Asociación Arariwa
Asociación Arariwa is a large non-governmental organization that started offering microcredit in 1994 to improve the quality of life, skills and equity of the population in the rural Cusco region of Peru. Arariwa serves the southern Andean provinces of Peru, and is distinguished by its efforts to reach the very poor, who often live in isolated rural areas. Arariwa fosters village banking, supports savings accounts, promotes access to education, and empowers women entrepreneurs (who make up 78% of its borrowers).
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.
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Success!! The loan was 100% repaid