Halima is in her late 30s and single with a girl who is in school. For the past year, she has been running a café where she sells water, soft drinks, and some kinds of food. Halima works from seven in the morning through 10 at night and is able to make a good monthly profit. She is doing fine. Halima has requested 12 previous loans through Tujijenge Tanzania. She used her previous loans to replace stock in her cafe such as cartons of drinking water. Halima has successfully repaid her previous loans and was able to buy a plot of land and pay school fees and household expenses.
Halima will share her loan with her loan group, “Mt. Livingstone,” which has 20 members. The members each hold each other accountable for repaying the loan. Halima will use her portion of the loan to restock items missing in her café. In the future, she hopes to build a nice family house.
About Tujijenge Tanzania
This loan is administered by Tujijenge Tanzania, which was founded in 2006. It has operations in Dar es Salaam, the coastal region, and the Lake Victoria region. The organization aims to reach out to micro entrepreneurs and provide them with financial and social intermediation services because capital is one of the major barriers to development and success for micro-enterprise initiatives in Tanzania.
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.