Catherine, who is in her late 30s, is a single woman with a son who is in school. Since 1998, Catherine has been running a tailoring business. She is doing great in her business and starts working from 8.00 am to 6.00 pm each working day, and is able to make a good profit. This will be her sixth loan request from Tujijenge Tanzania. She used her previous loans to start a shop selling tailoring materials as well as buying one tailoring machine and more tailoring materials. Catherine managed to pay back all her previous loans successfully. She used her business profits to cover school fees and her household expenses. Catherine will use this new loan to buy additional tailoring materials. She dreams of opening a tailoring school. Catherine will share this loan with her loan group "TOREES", which has a total of 3members. The members of this 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.