Yayo B. has been selling charcoal and firewood in the Darajabovu neighborhood of Zanzibar for 2 years. She works for 12 hours every day and earns a profit of approximately $35 each month. She is requesting her first loan from BRAC Tanzania so that she can buy more charcoal for her business and so that she can open a small cosmetics shop. If this loan helps her to expand her business, she intends to use the increased profits to reinvest in her business so that it can continue to grow.
Yayo is 34 years old, married, and has 8 children, aged 4, 9, 12, 14, 15, 16, 18, and 19. She will be sharing this loan with her fellow group members, Siti, Asia, Zainab, Maryam, and Zena. Each woman has her own small business in Zanzibar.
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.