Lázaro lives in San Juan Lachao, Oaxaca. He is a 34 year old single father who works hard every day to take care of his two children and give them a better future. For 10 years, his job as a driver is the activity that allows him to earn $450 USD a month, money he must distribute to the maintenance of his home and provide adequate education food and clothing for his children, whom he encourages to study hard in order to assure a better future. He currently has only one light bulb at his house, which is connected to his neighbor’s electricity service; however, the electricity service is often inconsistent, and suffers of constant breakouts. Despite this situation, Lázaro has one goal: buy a solar home system that will help him and his children extend their productive hours a day, something candles cannot provide. Once he has a constant electricity service, he is planning on using this system for his ranch in order to increase his productive activities and generate more income for the benefit of his family.
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 Lázaro's Group's $475 loan helped a member purchase a solar home system that will allow him to stop relying on expensive and hazardous candles. They will be able to extend their working hours and carry out productive activities for their ranch.