Gaydh Group, which contains of eight female and two male members, has small businesses in Hargeisa City. The group, which supports a total of around 100 dependents, has been in business for several years. Fosiya Gaydh (who has her hand raised in the group photo) is the group leader. She is a breadwinner and the mother of 11 children. She has a small retail shop in Mawel mini-market at Hargeisa Somaliland. The main products sold by Fosiya's shop include basic kitchen utensils and women’s clothes. A requested loan of $600 could bring her business to the upper ladder and improve the standard of living of her family members. Although each and every individual will take his/her loans separately, they are a group of 10 members.
More information about this loan
Kaaba is the only nonprofit microfinance institution currently operating in Somaliland, a semi-autonomous region located within Somalia that is not recognized by other countries. By funding this loan, you are helping this borrower to start or expand his or her business in a region with very limited access to credit.
Kaaba has developed loan products in alignment with the cultural context in the primarily Muslim area it serves. To avoid charging interest -- which is opposed to Islamic law -- the organization purchases assets for its borrowers and sells them at a slight markup ranging between 2% and 12%, proportional to the term of the loan.
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.