Mary, a fish seller in the Sakina neighborhood of Arusha for six years, currently earns an average monthly profit of $155 working everyday at her business from 10:00 a.m. to 8:00 p.m. She is requesting her first loan from BRAC Tanzania to buy more fish for her business, hoping that through this loan, her profit will increase and she will be able to expand her business.
Mary, the 30-year-old married mother of two children, aged 15 and 10, will be sharing this loan with her fellow group members, Felisiana, Agripina, Mary Y. and Bujaina, each of whom has her own small business in Arusha.
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.