Farah is a group composed of three Lebanese women living in a village in Mount Lebanon. They decided to join hands and form the group in order to acquire a loan, from Al Majmoua, and in order to support each other financially. Nouhad is the leader and featured member of the group. She is a 41 year-old married mother of three children, sitting on the far left of the picture. She is employed in a company which sells and trades beauty products. However, she also owns her small business and sells beauty products, such as purses, bags, and other items. Her husband also owns his personal business. However, their combined revenue is not sufficient to provide a healthy life and environment for their household. Furthermore, Nohad's children are enrolled in a private school, which adds tuition fees on top of the other family expenses. She decided to establish the group in order to purchase beauty products and bags to enhance and expand her personal business.
As for the other group members, Diyaa is sitting in the center and Mona is sitting on the far right of the picture.
About Al Majmoua – Lebanese Association for Development
The Lebanese Association for Development – Al Majmoua is Lebanon’s leading microfinance institution and the oldest Kiva partner in Lebanon. Al Majmoua’s vision is to “be the leader in creating an inclusive financial system where all people in Lebanon have access to affordable services.” Given Lebanon's diverse population, Al Majmoua lends to all nationalities, provided legal residency. The strong financial position achieved to date has allowed Al Majmoua to steadily lower its pricing over the years.
Based on the belief that non-financial services play a complementary role in improving the quality of life of the most vulnerable entrepreneurs, Al Majmoua has established a solid Business Development Services program for both borrowers and non-borrowers with a focus on women and youth.
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.