Rosemary, who is in her early 40s, is a widow with three children, a boy and two girls. All of her children are in school. For five years now she has had a grocery business selling beer, soft drinks and spirits. She works from 4pm to mid-night daily, but sometimes to 3am, and is able to win a good return per month.
This is her first loan from Tujijenge Tanzania which she will use to purchase more drinks. Rosemary dreams that one day she will be able to build her family a house. She will share this loan with her loan group "Hope Group" which consists of 5 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.