The group "Kuncup Mekar" was formed in 2005 and had 17 members. Over time, the group began to decrease and now only about 10 people are still active. This group has a wide variety of businesses such as catering for offices, corner grocers, clothes and bedspreads, household appliances, and selling snacks. Fellow members cooperate with each other, remind each other and support each other, which is why they have lasted for eight years. With a loan from Kiva, they are keen to grow their businesses, increase the types of foods they sell and add more equipment to increase efficiency.
The group is led by a woman named Lulu. She is married and has three children, two of whom are in school. Her husband works as a passenger boat driver part time. Lulu opened a catering service in her home. She works alone because she can’t afford to pay employees. Together with her husband, Lulu is trying to fulfill food orders from the offices she serves. With this loan, she will purchase cookware and a container to store cooked rice.
The woman in the purple scarf is a member of this group, but didn't borrow money in this loan cycle.
About Yayasan Sosial Bina Sejahtera (YSBS)
Yayasan Sosial Bina Sejahtera (YSBS) is a non-governmental organization that has worked on poverty reduction, food security, gender issues, education, public health, and climate change in Central Java, Indonesia for over 40 years. Kiva lenders can fund tuition loans for students attending YSBS’ maritime academy and senior vocational high school to help them launch their careers, or enterprise loans for rural groups of women participating in the organization’s microfinance program.
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.