The Promejoramiento community is a six-month-old group in need of funding for its second loan. These women are all mothers from the remote highland village of San Jose Chacaya. They are mainly dedicated to raising livestock and planting/sowing agricultural products. Others dedicate their lives to making and selling food, and administrating fruit stands and a small grocery store.
These women are openly very happy with their hometown. The general feeling is that they like the sense of community in their town and its citizens' latent desire to grow and prosper. Silvia Feliciana P. P. pointed out how much they enjoyed dancing or watching people dance at the yearly fair, which brings the entire town together in the church’s central square. Events like the fair are the ones for which the credit proves most helpful, allowing them to stock up in order to maximize profits during these periods of condensed sales.
They unanimously made a point of mentioning how thankful they are of the possibility of receiving these “very helpful” loans that allow their microenterprises to “go very well,” as Maria R. A. expressed. She went on to say that they feel a sense of empowerment when receiving the funds, a kind of responsibility to do something bigger than ever before with it, and prove to their group and, most importantly, their family, that they can pay back the money. They unanimously agreed as well that it was relatively easy to pay back the money. In addition, they all enjoy meeting with their communal bank, which not only allows them to support each other mutually in repaying loans, but provides a few fun social hours every month.
“Without this money, it is impossible to overcome,” stated Natalia T.. She mentioned the barriers of the cycles of steady profits and expenses, but the drowning and constant increases in costs of living that keep their businesses at such a minimal size. Reliable microloans allow them to overcome these barriers.
Their ultimate investment goal is growth, which will lead to money, which will allow them and their children to live comfortable lives, despite today’s unprecedented costs of living. The fact that every one of these mothers sends her children to public school is proof of their claims of dedication to the family. They send all of their children to school despite the large expenses and the need for labor at the business. Esperanza Juliana started receiving small loans when she was a mobile sweets and chips vendor, and today, she requests and consistently repays 400 USD and higher to purchase wholesale items for her well-established store, while sending her two girls to school. Natalia T. passes house to house selling from two large (head carried) baskets tamales, rice, beans, and atol de platano, some of which she grows on her own fields with the help of her husband. She brings her children along to help if they are not in school.
Increased profits from growing more vegetables, buying wholesale to supply larger family stores or investing in buying and raising more livestock at once are the economic benefits which keep these mothers consistently pay off and return for more loans. This dedication holds as an ultimate goal to lift their children to a higher starting platform by paying for their schooling successfully and providing them with adequate health care. It seems that their children, their ultimate pride, are a reflection of their own life, and through these loans they choose to better their children’s lives, making up for the hardships that they have had to live through.
About Friendship BridgeThis loan is administered by Friendship Bridge (FB), a nonprofit, nongovernmental organization that empowers thousands of impoverished Guatemalan women through its Microcredit Plus program. The program combines small loans averaging US$350 for four-to-twelve month loan terms with non-formal, participatory education.
As FB clients, women start, expand, or diversify their businesses and learn practical lessons on topics including business, health, and self-esteem. FB’s clients borrow as a group, forming Trust Banks (groups of 7-25 women who serve as co-guarantors of the loan and act as a self-regulating support network).
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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Success!! The loan was 100% repaid