Juan, Catalino and Alejandra live in Cerro Niño, a community that is 2 hours by a dusty road away from the nearest commercial center (where this picture was taken). Very few of the households in this region have energy access and they rely on ocote wood to light their households. Ocote sends out a lot of smoke and gives out very little light. This does not allow the family of Juan (he has three children) to have an adequate environment for any activities in their household. Ocote is also a health, security and environmental hazard. Juan works in the field, mainly with corn and consumes more than 8 pieces of ocote each week for lighting, his community and other households get these by cutting down trees in nearby forests. This mean of lighting is not only hazardous for Juan and his family, it is also dangerous because their households can burn down and it is also beginning to affect the environment due to the high deforestation that this activity is provoking in the surrounding areas. Deforestation also causes population and their homes to be more exposed to natural disasters. Cerro Niño is a community located in hill slopes so without trees, landslides are more common. This is something that happened during Hurricane Carlota for example. People are left with out communication for weeks when this happens. He is very excited on acquiring a solar home system to light up and to charge his cellphone for emergencies.
IluMexico is a hybrid social enterprise that provides clean energy via solar-powered home systems in off-grid communities in Mexico. Kiva loans enable low-income households to purchase these systems. By lending to borrower groups that cross-guarantee each other, IluMexico is able to reach far more borrowers who do not have the collateral or credit history to get a loan from a formal financial institution.
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
IluMexico joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.
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.
A portion of Juan's Group's $450 loan helped a member juan, Catalino and Alejandra to stop depending on ocote-pine for lighting and allows each of them to buy a reliable solar home system for quality lighting and cell-phone charging.