Arcoiris Group is requesting a second loan funded by Kiva. The funds from this loan will be invested mainly in businesses related to textile production (including weaving, hand embroidery and making aprons), as well as in selling vegetables and produce.
Paulina, a founding member of Arcoiris Group, is someone who has been described in previous reports. She is a 36-year-old woman who has only a second grade education. She has four children. Along with her family, Paulina works in the textile industry. She used her previous loan to buy yarn, in order to increase production. She was able to successfully pay off that loan and looks forward to the next one. Presently, Paulina’s business is doing well, and she is happy to report that she still employs three members of her community. Because of her previous loan, she was able to take orders which proved profitable, especially before the Easter holiday.
Paulina is currently applying for an additional loan, which she will invest in the purchase of various types of fine yarns for her textile business. In addition, she will use her loan for her second revenue stream. Specifically, Paulina raises and sells chickens and intends to use part of her new loan to buy new chicks that she will raise!
Paulina and the Arcoiris Group trust bank are extremely thankful for these loans, which will help them maintain and increase each of their businesses. They look forward to the future, to providing a good education for their children and improving their lifestyle. As their name suggests, with the loans and education that they are receiving, they are creating the pot of gold under the rainbow!
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