Santa Maria Visitacion is a rural community in Guatemala and recently, a new Friendship Bridge Trust Bank was formed here called “Orquideas Visitecas” meaning “Visiteca Orchids”. The group consists of eight women whose average age is 29 years. One of the leaders of the Trust Bank is 18-year-old Magdalena. After graduating from high school and failing in her search for a job, Magdalena opened a pharmacy. Soon after, she found herself pregnant and a single mom. Since her business is progressing well, she wants to improve it even more and so, she is requesting a loan to invest additional capital to purchase more medicines and increase her inventory. Madgalena has received valuable and relevant educational training about medicines. She is associated with two medical professionals in the community. Her customers will avail themselves of the expertise of the three of them. This will be especially important in cases of emergency.
Magdalena, along with the seven other ladies of “Orqideas Visitecas”, is looking forward with great anticipation to their monthly meetings with a Loan Officer from Friendship Bridge. They not only make repayments on their loans but also receive training on topics like women’s identity and leadership, Marketing and business administration, as well as health and self-esteem. The women are hungry to learn about these subjects and more, so that they can more fully educate and develop themselves.
Magdalena and The “Orquideas Visitecas” Trust Bank wishes to express their gratitude to KIVA investors for their confidence and their belief that the women can climb out of poverty with a loan and education. Armed with these tools, the women can step into a more prosperous future, benefiting themselves, their families, and their community of Santa Maria Visitacion.
About Friendship Bridge
This loan is administered by Friendship Bridge (FB), a nonprofit, nongovernmental organization that empowers thousands of impoverished Guatemalan women through its Microcredit Plus program. The program combines small loans averaging US$350 for four-to-twelve month loan terms with non-formal, participatory education.
As FB clients, women start, expand, or diversify their businesses and learn practical lessons on topics including business, health, and self-esteem. FB’s clients borrow as a group, forming Trust Banks (groups of 7-25 women who serve as co-guarantors of the loan and act as a self-regulating support network).
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.