Habiba, who is in her early 40s, is married and has five children, four of them attending school. She has been running two businesses, hair plaiting and food vending, for 15 years. She works from 8 a.m. to 10 p.m. daily and is able to make a good monthly profit.
This will be Habiba's 2nd loan from Tujijenge Tanzania. She used the previous loan to buy cooking oil, rice, plaiting thread and charcoal. She has repaid her loan successfully. Habiba wants a loan to put iron sheets on the charcoal store and to buy more sacks of charcoal to sell. Her dream is to one day be able to raise all of her businesses to a good standard.
Habiba will share this loan with her loan group "Chiriku" which consists of 16 members who will hold each other accountable in repaying 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.