Evans will be receiving an input loan for a half acre of maize, millet, and sorghum cultivation. The 2013 Long Rains season will be Evans’s first season with One Acre Fund. He joined this year in order to grow enough food for the family and to develop better farming skills.
Evans reports that his harvest last year was poor. He is hopeful that he will have an excellent harvest as a One Acre Fund farmer. He intends to use his profits from the 2013 Long Rains season to send his children to school as well as to invest in poultry.
Evans’s group members will each receive input loans for half an acre during the 2013 Long Rains season. In total, they will receive inputs for six acres of maize and sorghum.
(Carolyne, a member of Mkulima Group, is pictured above. However, her husband has already appeared on Kiva and she shares her OAF membership with him. In order to prevent the double funding of a farmer, she is pictured as a member of the group, but will not receive funding from this loan.)
More information about this loan
To give borrowers more flexibility, One Acre Fund permits them to switch groups, drop out of the program and change their loan amounts before receiving their inputs. To accommodate this, Kiva allows One Acre Fund to post loans for groups that may change in size and membership. Only the group leader is featured in the photo, representing the loans for each of his or her individual group members.
If a lender makes a loan to group containing a borrower that drops out, the lender will receive the full loan amount for that borrower back at the end of the harvest season. If the lender makes a loan to a group containing a borrower that decides to take a smaller loan amount after the loan is funded, the lender will receive the repayments from the smaller loan amount plus the full difference between the two loan amounts at the end of the harvest season.
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
About One Acre FundWith this loan, One Acre Fund will purchase fertilizer, seeds, and other important farming inputs to distribute to this farmer group during Kenya's next planting season in February. This distribution of farming inputs is part of One Acre Fund's integrated agriculture package, which includes training, reliable input supply (such as fertilizer and seeds), credit and insurance. Clients enroll between July and October for the following planting season, which begins in February. By purchasing inputs during these months, One Acre Fund is able to take advantage of the historically low farm input prices during this time of year in Kenya.
Members of One Acre Fund form groups in which each borrower guarantees the loans of all other borrowers in the group. One Acre Fund differs from a traditional microfinance institution, however, by allowing groups to split before the delivery of inputs at planting time. If a group were to split, each of the two new groups would have fewer members that could support a delinquency or default from a member. This may represent a different risk than that for a traditional MFI’s group loan.
Important Information About the Risk of One Acre Fund
One Acre Fund is not assigned a risk rating on Kiva. This is due to the fact that One Acre Fund’s business model differs enough from traditional microfinance models that Kiva’s current risk rating system is not applicable in accurately reflecting the risk assessment. Key risks and further information in making loans to One Acre Fund borrowers can be found on the organization’s partner page.
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.
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