Lia is a mother of five children, all of them are still attending school. Lia has a business making "rengginang". Rengginang is a kind of Indonesian thick rice cracker, made from cooked glutinous sticky rice and seasoned with spices, made into a flat and rounded shape, and then sun-dried. The sun-dried rengginang is deep fried with ample cooking oil to produce a crispy rice cracker. Lia sells it around her environment and she also sells it in her child’s school. She can sell 7- 10 packs every day. One pack is priced at 10,000 IDR.
Lia will use the profits for savings and buying school books. The rainy season is her obstacle to run this business. Eid al-Fitr is the best condition to sell her goods. Lia will use this loan to buy the ingredients and the wrap of her food. She hopes someday she can bring her child on vacation and have a food stand.
About VisionFund Indonesia
VisionFund Indonesia is a Christian micro venture capital organization owned by Mitra Masyarakat Sejahtera (MMS) and Wahana Visi Indonesia. Founded in 2000, VFI operates in both Jakarta and Surabaya, the two biggest cities in Indonesia. VFI targets the entrepreneurial poor who have existing microbusinesses for at least 6 months and have no financial access to commercial banks. VFI also provides microinsurance for all clients through a partnership with Allianz insurance company. With nine branches as of 2011, VFI hopes to expand in order to reach underserved microfinance markets in other islands of Indonesia.
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.