Ubah Omer is a 46-year-old woman. She has nine children, seven males and two females. She is the one raising her hand in the group photo. Ubah is the leader of a group named Hambal, which consists of 10 members. Hambal group consists of six women and four men. All of the group members have an existing small or medium-sized business in Hargeisa City. Ubah has a medium-sized retail cafeteria in Somaliland parliamentary compound in the capital of Hargeisa. The main products Ubah sells are coffee, black tea, and soft foods. She requested a loan amount of $700 from Kaaba MFI to expand her cafeteria. Hambal members are a group, but each and every person has his/her loan, as all of them have existing businesses.
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.