The Women's Bank Of Siquirritos Group
This loan represents the first partnership between Fundación Mujer and The Women’s Bank of Siquirritos. The loan consultant that has been working with the group members describes the women as hardworking, and goal-oriented. The members have extensive experience in carrying out their individual activities. A lack of access to working capital is a commonality amongst group members and has hindered the progress of their businesses. For this reason, these women have applied for a loan with Fundación Mujer in order to expedite the success of their businesses.
Isabel M. C. is a 41-year-old mother of two who lives with her family. She plans to use this loan to invest in her sales business by purchasing inventory items such as pajamas and other catalog merchandise. Her main objective is to expand her business in an effort to improve the living conditions of her family with the added income. As mentioned, her main obstacle has been a lack of access to working capital.
Isabel wakes up early every day in order to complete domestic tasks and prepare her children for school. The rest of her day is dedicated to her business, making sales, or collecting payments from clients in her community.
With respect to the group, Isabel mentions that all the women are from the same community. She says that the group lending model is advantageous because it allows the women to act as guarantors for each other’s loans. Additionally, Isabel is thankful for the support offered by Fundación Mujer to the group as a whole. She is aware of the potential disadvantage which may present itself if any members are unable to pay back their loans, as the whole group is responsible for all repayments.
More information about this loan
In Costa Rica, funding for microfinance institutions is hard to come by, and many institutions find themselves having difficulty growing and reaching all the demand for loans that exist. Kiva works with Fundacion Mujer because it attends a very marginalized population in Costa Rica, with a specific focus on women. In addition to the loan, Fundacion Mujer provides specialized training programs for their borrowers on everything from computer classes to salon training. Because of the difficulty in obtaining capital in Costa Rica, Fundacion Mujer cannot serve all the women that need loans. Therefore Kiva plays a unique role in helping Fundacion Mujer grow its portfolio and reach borrowers it otherwise would not be able to.
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