Yohana, who is in his mid 30s, is married with three children: two daughters and one boy. Yohana’s children are in school. For two years now he has had a carpentry business, making different kinds of furniture such as sofa sets, cupboards, chairs, tables, and beds. He does these activities in the same place, and in the front he has opened a showroom where customers can come to select and buy the furniture. He starts working at 6 a.m. and ends at 6 p.m. Sometimes he stays to 10 p.m. if he has a client’s orders. Yohana is able to earn a very good profit per month.
This is his first loan request from Tujijenge Tanzania, which he will use for buying more wood for the furniture business. He dreams that one day he will be able to own an industry. He is doing very well.
Yohana will share this loan with his loan group “Lotus” which totals 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.