Frutos De Vida Group
The group’s treasurer, Jessica, was interviewed for this profile. In the picture she is seated in the first row wearing a white sweater.
Jessica prepares and sells fast food. Her mother, María Magdalena, who is also part of the bank and is as the group’s president, helps her with this business. They sell by special order and home-delivery.They are currently completing construction of a kiosk in their home from which they will sell the food they prepare.
Jessica and María Magdalena will invest this loan in potatoes, oil, and materials to finish the interior of the kiosk; if they have extra money left over they will save it and use it to cover the other expenses they may have when they open the kiosk for business, like a display case for the food, “window protection” (which refers to iron bars people often put up on the windows of their kiosks to dissuade thieves), and promotion of the business.
Jessica’s goal is to get her water and energy bills paid off, to arrange her teeth, and to treat a back pain provoked by a deviated disk. Her motivations are her two children, who are 12 and 1.
Jessica has enjoyed working with Fondo Esperanza, especially the fact that the bank meetings are a good distraction and allow her to interact with other people which keeps her in good spirits. For Jessica, the loans are a great help and they give her hope to advance her business, as the income from it is her family’s primary support.
** Temuco is the capital of the Araucanía region. It is located 670 km south of Santiago (the capital of Chile) and possesses a series of lake-side spa resorts and striking native flora and fauna. This region is also noteworthy for being the region where 50% of Chile's existing indigenous Mapuche community lives; some of whom are members of Fondo Esperanza communal banks.
About Fondo EsperanzaFondo Esperanza (FE) is a private non-profit organization that supports entrepreneurship by providing micro-credit and training to people living in poverty in well over 100 cities throughout Chile. By providing these services, FE aims to improve the living conditions of the entrepreneurs and their families. In 2010, FE provided loans to more than 41,000 entrepreneurs. It utilizes a communal banking model in which groups of 18 to 25 clients meet on regularly and guarantee each other’s loans. The members use their portion of the loan to create or expand their own businesses. In the group meetings, clients receive training though the FE Entrepreneurship School, which enhances clients’ personal and business skills and ability to work in groups.
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