Sra. Fabiola is a distinguished member of the group who is a single mother of one child. She produces homemade bread and distributes some of it to nearby shops. The rest of it is sold from the corner of her mother’s house, where she resides for the moment. Fabiola is a highly intelligent and capable person, but in order to generate extra income to support her child, she needs to enlarge her business. For this reason, she is requesting a loan to buy more supplies and a larger oven to help generate more income so that she can help her elderly mother and pay for her child’s education.
The remaining members have businesses selling hamburgers, food, cosmetics, fruit, or providing services such as welding and public transportation. Competition in the marketplace is high and really difficult, especially in the food and cosmetics businesses in which there is little available operating capital. This loan will be used to improve their businesses by purchasing supplies, merchandise, and equipment to make their work more efficient and help generate additional income to improve their families’ quality of life and provide them with stable homes. Most of the members have experience working in a Communal Bank setting because they have taken out loans with other institutions similar to Fundación Agrocapital. The members are grateful for the financial support and the trust being placed in them.
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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