Lilian is in her early 20s, single and has been earning a living for the last six months by selling women's clothing. She works from eight o'clock in the morning to as late as six o'clock in the evening every day. She is doing well and is able to earn a fair monthly profit. She is applying for her first loan from Tujijenge Tanzania, which she will use to buy more clothing to sell to her customers. Her dream is to one day be able to build her own house. She will share this loan with her group “Zebra,“ which has a total of 15 members who will hold each other accountable for paying back the 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.