The Arab Women´s Bank Group
The loan consultant who has been working with these women describes them as a tight-knit group with much experience in their individual businesses and the mutual goal of attaining a higher standard of living within their communities and families. The name of this group comes from the Bible. To the members of the group, Arab refers to growth and expansion, both of which are central values for this group.
Emma Q. Cevrato is a 35-year-old mother of four who lives with her family in Pococí. She is also the elected president of this group. Emma is involved in two types of business: sewing/alteration services and the sale of brand-name clothing. She says the secret to organizing her day in a productive manner is keeping to a schedule. She designates blocks of time to take care of domestic tasks and blocks of time to her business. When she is very busy, her children assist her by tending to the sales part of the business while their mother sews in her workshop. Emma's goals are to expand her business and grow her list of clients. Her dream is to own a business separate from her home. With respect to her family, the immediate goal is to establish economic stability. The main obstacle to her progress is a lack of working capital funds in order to invest in sewing materials such as thread, needles, and fabric, as well as clothing merchandise.
The members of the Arab Women´s Bank are neighbours and friends who have lived in the same rural community for the majority of their lives. They identify the main advantage of the group lending model as the ability of each member, without collateral or credit, to act as a guarantor for other members, which enables each member to receive a loan. The main disadvantage they identified was the possibility that if somebody defaults in the group, or has trouble repaying their loan, this implies a responsibility to act in support by the other members of the group.
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