Tabia, who is in her 20's, is married, has two children and earns a living by running a beauty parlor. She works from 8:00 a.m. to 10:00 p.m. daily and makes a small monthly profit. She is applying for her eighth loan from Tujijenge Tanzania. She used her previous loans to buy supplies for her beauty saloon. She has successfully paid back all of these loans and is now applying for a new one, which she will also use to buy more supplies. Her dream is to one day build her own house. Tabia will share this loan with her loan group, which is called "Tuyangatane" and has 15 members. Each member of the group will hold the others accountable for paying back their share of this loan.
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.