Mwanaisha, who is in her early 20s, is single. She has been running a food sales business for one year now. She works from 6 am to 4 pm daily and is able to make a small monthly profit. This will be her first loan from Tujijenge Tanzania, which she wants to use to buy 25 kilos of wheat flour, 25 kilos of baking flour, 25 kilos of rice, a small bucket of cooking oil and charcoal. Her dream is to be able to buy furniture for the room she is about to rent. She will share this loan with her loan group Kwimage which has a total of 17 members who will hold each other accountable in paying back their loans.
About Tujijenge Tanzania
This loan is administered by Tujijenge Tanzania, which was founded in 2006. It has operations in Dar es Salaam, the coastal region, and the Lake Victoria region. The organization aims to reach out to micro entrepreneurs and provide them with financial and social intermediation services because capital is one of the major barriers to development and success for micro-enterprise initiatives in Tanzania.
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.