La Alianza is a group from an extremely poor area in San Pedro, Dominican Republic. In this group, many of the women have already received loans and have their own small business. Dionicia S. is the group representative, and a great example of the power of micro-credit. She came to Esperanza International with no form of income and was living in extreme poverty. Dionicia is the mother of 4 older children, and had to give everything she had just to feed them. As her children got older and she started to have a little more time she realized she wanted something different from her life, and knew she had to do something about it. She then applied for a small loan so she could start her own small store, which she started as a small stand in her neighborhood. She sold simple things like candy, rice, and other cheaper items. She worked hard and was able to increase her business to the point today where she has her own small store! She is finally making some good money, and is happy with what she is doing. She can finally save money and help out her children when they need it. She finally feels like she can provide, and feels like she has something of her own. She is a great story of success, and is continuing to increase her business. She hopes to keep on increasing in size and hopes to have a giant store someday.
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.