Fatuma, who is in her early 30s, is married and has three children, a girl and two boys. Two of the children attend school, and the other is still too young for school. She has been running a grocery business for one year and six months now. She works from 3 pm to 12 midnight daily and is able to make a good profit per month. This will be her third loan request from Tujijenge Tanzania. With the previous loans, all of which were paid back successfully, she bought more soft drinks, beers and spirits. Fatuma also bought salon equipment, two driers and a steamer in preparation for opening a beauty salon. With the profits she earned, she covered school fees and household expenses, and she reinvested in the business and saved the remainder in a bank. She will use this loan to increase her stock of drinks. She dreams of open more grocery stores in other areas. She will share this loan with the other members of Madona Group, which consists of 19 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.