Esther, who is in her early 40s, is married with four children who are in school. Since 1998, Esther has been managing two different businesses: a dry food shop that sells rice, maize flour, baking flour, beans, sugar and other food, and a charcoal business. Esther starts working from 6:00 a.m. to 10:30 p.m. per working day and is able to make a very good monthly profit.
From Tujijenge Tanzania, this is her first loan request, which she will use to buy more sacks of charcoal to resell. Esther dreams to build a nice family house. She will share this loan with her loan group "MSAKUZI A1," which consists of six 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.