David, who is in his early 20s, is single and still young. He has been running a pharmacy (medicine shop) for two years now. He is also studying medical issues. He works from 6 am to 8 pm daily and he is able to make a good monthly profit.
This will be his second loan from Tujijenge Tanzania. He used the previous loan to pay school fees for himself, cover his household expenses, and buy more medicines. He has paid back his loan successfully. He wants a new loan to purchase more medicines for his business. His dream is to one day be able to have more skills in medical issues.
He will share this loan with his loan group " PERA ", which includes 14 members. The members of the group 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.