Slmb I Group
SLMB has never got a loan from SMT before. They heard of SMT from colleagues in other schools who have benefited greatly from SMT’s services. They decided to form a group and send in an application to SMT requesting a loan after hearing these other success stories. With the loan, some of the staff members will start a small business and those who are already run small businesses will invest the loan into their business. Some of the staff members will be using the loan to buy pieces of furniture, others to pay either for their children in their education or pay for themselves to pursue further studies. Others will use their loan in home building projects.
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.
Fifty-one year old Brema S. K. is the deputy head teacher at SLMB. He was born in Masoko, on the outskirts of Magburaka town. He is married with four children. Two of his children are in primary school and the other two have already finished their schooling. Brema will use his loan in the construction of a home. He plans to buy bundles of corrugated iron zinc for roofing, nails and bricks for a strong foundation. In Magburaka, where he will make these purchases, a bundle of corrugated iron zinc will cost him Le 210,000, a box of nails Le 18,000 and each brick will cost him Le 500.
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.
About Sierra Leone
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Success!! The loan was 100% repaid