Halima, who is in her mid-thirties is a widow with one child, who is still in school. She has been a food vendor for two years now. She works from 5 a.m. to 6 p.m. daily, and is able to make a fair monthly profit. This will be Halima's third loan from Tujijenge Tanzania. She used the previous loans to start selling fabrics and also bought items for her food business. She has paid back all her loans successfully. She used the profit to pay school fees and covered household expenses. She will use this loan to start selling soft drinks. She dreams of improving her life and her business.
Halima will share this loan with her group, Blue (comprised of two members), who 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.