Ndika, who is in her mid 20s, is married with two kids, one of whom is in school and one is still a baby. For three years now, Ndika has been managing her family expenses by running a business selling charcoal. Ndika works from 6 am to 7 pm daily and is able to make a good return per month. From Tujijenge Tanzania, this is Ndika's 18th loan, which she will use to buy more sacks of charcoal and to start a shop business selling dry food. She used her previous loans to restock more sacks of charcoal and she has paid back all her previous loans successfully. Ndika used her business profit to buy land where she expects to build a house. She dreams that one day will be able to build a house.
She will share this loan with her loan group" New Africa", which includes eight 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.