Alfonza and Natividad grew up in the community of "El Mesón" in Malinaltepec, a highly marginalized area in the state of Guerrero. Alfonza inherited the trade of harvesting corn and coffee from her parents and she intends to pass on this important knowledge to her own two small children. She lives two hours away from the nearest town and she has never had access to electricity. As an alternative source, Alfonza asks her children to collect fire wood and "ocote" from the hill and bring it home for them to light their evenings. By purchasing a solar home system, Alfonza and her children will be able to spend more time together. Her children will also be able to do their homework better at night. For Alfonza, being able to pay for this solar home system will be one of her proudest moments.
IluMexico is a hybrid social enterprise that provides clean energy via solar-powered home systems in off-grid communities in Mexico. Kiva loans enable low-income households to purchase these systems. By lending to borrower groups that cross-guarantee each other, IluMexico is able to reach far more borrowers who do not have the collateral or credit history to get a loan from a formal financial institution.
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
IluMexico joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.
This is a Group Loan
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.