S N Jose Group
Sr. Hugo is the father of three school-age children. He works as a mechanic and helps his wife at night with selling soft drinks and milanesas (breaded meats) from the corner of their house. His oldest son is 15 years old and in charge of looking after his younger siblings while he and his wife are running their business. Don Hugo is a man who has maD. many sacrifices. He is currently saving so that he can have a more comfortable home and proviD. his family with a better place to live. For this reason, he continues to work so that he can fulfill his greatest dreams of seeing his children become professionals and providing them with a decent and comfortable home.
The rest of the members are engaged in different business activities involving public transportation, roasted chicken sales, motorcycle taxis, soft drink sales, clothing, bread, empanadas, shoes, and housekeeping services. The competition that exists among their businesses is not as difficult since each member's business is well segmented and has its own distribution channels for selling and offering products. Their businesses are situated in strategic locations. The members who sell cosmetics have steadily built up their clientele and have been working for many years with their products.
This loan will be designated for investment in their various works. Some members are starting new businesses. Others are changing out their inventory based on the season and the market conditions of supply and demand. Most of the members only heard about the availability of these loans through their group, so they are taking a training course in which they are instructed in how credit works and the expectations the Institution has for each of its members. Some members are very knowledgeable already since this is an experienced group that has worked previously with another institution.
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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