In the city of Paraguarí, a group of women met in order to form a committee and take out a loan. They arranged a meeting to find out about the program, and accepted because it gave them the opportunity to increase their working capital and receive training sessions that would allow them to more fully develop themselves as people. They are very hard-working women, and this is a great opportunity for them, since they have never before received any kind of credit. The committee is called Felíz (“Happy”), and they are currently in their fifth loan cycle. The group is made up of 18 hard-working, sacrificing women who strive each day to afford a better quality of life to themselves and their families. All the group members are very active women, and have invested their loans in their respective activities. One of these women is Mrs. Antonia V., who sells fruits and vegetables in the Paraguarí market. She has a stand where she displays her fresh produce, which she buys from other group members. Some of the fruits she sells are oranges, bananas, pineapples and watermelon; some of the vegetables she sells are onions, tomatoes, carrots and hot peppers. Her sales are very good, and help her pay her household expenses. Antonia says, “A lot of things depend on my income, like food and my children’s clothing and education.” She is a single mother. She is very grateful for this loan, which she used to buy more fruits and vegetables to sell.
About Fundación Paraguaya
Fundación Paraguaya is a financially self-sustaining social enterprise that promotes entrepreneurship in urban and rural areas through microfinance, education programs, and more. Its focus on agriculture has helped many farmers boost their crop yields. And a number of other borrowers have taken out loans to start and grow social businesses that have helped deliver eyeglasses, medicines and other helpful services in their local communities.
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.