Slmb Ii Group
This is the group's first loan with SMT. They heard of SMT from colleagues in other schools who have benefited greatly from SMT’s services. The use of the loan varies amongst the teachers. Some of the staff members will start a small business. Those who are already small business owners will invest the loan into their businesses. Some of the staff members will be using the loan to buy pieces of furniture for their domiciles and others plan to pay either for their children’s education or to pursue further studies themselves.
Government salaries are usually quite small for teachers, thus making teaching an unattractive profession for many whose primary motivator is money. Many choose other jobs over teaching because of the small salary, thus starving the field of qualified personnel to teach the children. The few who remain in the classroom have to find other ways of making ends meet. The vast majority of them engage in either business or agriculture or they provide extra tutorial classes for the children (though this is a practice the government is trying to stop). Needless to say, loans from SMT are a great help to the teachers in order to boost their businesses or invest it in something productive. Many want to go to school but could not afford the cost. Some will want to buy pieces of furniture, but their monthly salary is not enough to let them do so. With a loan, they will be able to meet some of these needs. And with their monthly salaries, they can repay easily via a payroll deduction type of system.
Forty-one year old Francis T. (third from right) is the head teacher at SLMB II. He was born in Makeni Yoni, a village about forty-three miles from Magburaka town. He is married to a teacher and the two have six children. Three of his children are in primary school and three in secondary school. Francis will invest his loan in business. He has already been in business for two years now. He buys and sells palm oil, ground-nuts and rice. With this loan, he will invest all of it in palm oil alone. He is expecting to be able to get at least twenty-five “barters” of palm oil (five gallons of palm oil make one barter). He purchases the palm oil in the nearby village of Makump, about nine miles round-trip from Magburaka. A barter of palm oil costs something between Le 40,000 and 50,000. There are no constant prices; prices fluctuate depending on the season and the availability of the palm oil. Francis is very excited about this loan as the profit it will generate for him will make him “feel like I’ve been a successful somebody in life.”
About Salone Microfinance Trust (SMT)Salone Microfinance Trust (SMT) is Kiva’s oldest field partner in Sierra Leone. SMT began operations in 2002 as a microcredit program of the NGO Child Fund Sierra Leone under a USAID program to assist the reintegration of ex combatants back into their communities. Today, SMT offers group, agricultural, individual and salary loans to micro-entrepreneurs through six branches and one sub-branch in rural, urban, and peri-urban areas. By providing small loans and other financial services, SMT empowers poor clients to generate more income to help their families, improve their wellbeing, and create a more vibrant private small-business sector in Sierra Leone.
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.
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Success!! The loan was 100% repaid