Indah is married with two children. She has been selling clothes on credit for six years. She goes around her neighborhood to sell clothes. The business is going well. Now she also receives orders from her customers. Income from her business can help her to provide food for the family, because her husband is a laborer on a big ship and comes home when the ship comes back. She is taking her first loan with VisionFund Indonesia to buy t-shirts, housedresses, and pants to sell on credit. In the future, she wants to sell clothes for cash, not just on credit. She hopes she can send her children to reach higher education and have a degree from the University.
Other group members are also selling clothes on credit and fried snacks.
About VisionFund Indonesia
VisionFund Indonesia is a Christian micro venture capital organization owned by Mitra Masyarakat Sejahtera (MMS) and Wahana Visi Indonesia. Founded in 2000, VFI operates in both Jakarta and Surabaya, the two biggest cities in Indonesia. VFI targets the entrepreneurial poor who have existing microbusinesses for at least 6 months and have no financial access to commercial banks. VFI also provides microinsurance for all clients through a partnership with Allianz insurance company. With nine branches as of 2011, VFI hopes to expand in order to reach underserved microfinance markets in other islands of Indonesia.
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.