Genesis 1 , 2 Group
Clara is excited to be taking her second loan with Esperanza after having successfully repaid her previous loan and grown her business. She has had her business for 8 month. She was starting to use her savings to run her 'Comedor' (small restaurant in the neighborhood, especially for lunch). After starting, she heard about Esperanza´s loans and decided to be part of the program. She plans to use this new loan to invest in her business by buying a bag of rice, 10 plastic chairs, and 3 tables. She will use the profits to reinvest in her business and she is dreaming of having her own restaurant in the town.
Her story is representative of her group and of Esperanza's Haitian and Dominican clients, many of whom recently emigrated to the DR from Haiti. Her group is located in the urban slums surrounding Santo Domingo. This area, like nearly all impoverished areas of the Dominican Republic, suffers from unreliable electricity and running water (none of which is potable).
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