Florencia has a little rural shop, where she makes a regular income of $10 USD a day. Whenever the formal grid service fails (which is very often), Florencia is unable to carry on with her sales and therefore she loses clients and money. By purchasing a solar home system, Florencia will be able to open her little rural shop and continue to offer products to her customers. This will increase her income and improve the standard of living for her 5 children. Florencia has also expressed that having access to a clean energy source will help her children do their homework without the use of candles. The entire family is excited by the possibility of having access to this technology.
About IluMexicoIluMexico 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.
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