Abdirahman is a 49-year-old man. He has 8 children, 4 girls and 4 boys. Abdirahman is an engineer who has a cement-brick production machine in the town of Borama. In the photo, he is standing on the far right and is raising his hand. He is the leader of this group, known as Damal, which consists of 11 members, 7 male and 4 female. All of the group members have existing different businesses, and they need to expand their medium and small businesses.
Abdirahman bought the brick production machine in 2009 with $2,500 from Hargiesa. He produces from 700 to 1,400 pieces of brick per day. He produces two different sizes of bricks and sells them for $0.43 and $0.53 each, respectively, or uses them to build houses as he is an engineer. Now, Abdirahman needs to further expand his brick production, so he requested a loan of $700 from Kaaba Microfinance Institution. Kaaba will provide him the cement and required materials as Kaaba provides its loans in kind.
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.