Mwarabu, who is in his late 20s, is married and has a son and a daughter. One of the Mwarabu's children is in school. He has been running a business selling local chickens since 2007. Usually he obtains these chickens from villages where they are available and at a low price. It takes about four days for him to obtain those chickens and to resell. He works from 6 a.m. to 6 p.m. daily in the market and is able to sell 80 to 120 chickens, making a good profit per month.
This will be his first loan request from Tujijenge Tanzania which he will use to buy more local chickens from different villages. He dreams of building a nice house. He will share this loan with his loan group, "GOOD WORK," which consist of 10 members. The members of the group will hold each other accountable for paying back the loan.
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.