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In this Group: Ceferino, Esteban, Juana Irma, Gabina, Ivan, María Elena, Elisa, Wilbert, Lucas, Rony*, Valentina, Milva*, Ruben, Irma
* not pictured
Palccaraqui is a group of 14 neighbors and family members who live and work in Urubamba, a small town an hour from Cusco. The group name means “The Path of the Sticks” in Quechua, the indigenous language spoken throughout the Sacred Valley. The group members are using the loan to fund their own businesses such as making fireworks, buying restaurant supplies and transporting goods for sale.

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.

Additional Information

Important Information

About 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.

About Peru

  • $12,000
    Average annual income
  • 127
    View loans »
    Peru Loans Fundraising
  • $58,863,350
    Funds lent in using Kiva
  • 3.0
    Peru Nuevos Soles (PEN) = $1 USD

Success!! The loan was 100% repaid

A portion of Palccaraqui Group's $3,350 loan helped a member to buy powder to make fireworks and to purchase merchandise for other small businesses.
100% repaid
Repayment Term
6 months (Additional Information)
Repayment Schedule
Jun 16, 2009
Jul 1, 2009
Currency Exchange Loss:
Jan 15, 2010