The group member interviewed was Idelia, who is the group’s president. In the picture you see her in the first row, to the left with short gray hair.
Idelia has a call center from which she also sells sweets and general goods. Her shop is located in the center of Nueva Imperial, and she has had this business for approximately 8 years. She will invest this loan in paint to refinish the outside of her business, and into a few display cases to show her products. She likes for her business to be well-kept, so she does not like to go very long without touching up the paint and displays. This is necessary because she has a lot of competition. She also plans to put part of the loan into merchandise such as cell phone re-charge cards, sweets, diapers, razors, and deodorants.
Idelia’s goals are to add on to her home and to buy a car, and she is currently saving for these projects. Her motivation is her 22-year-old daughter who is attending university and studying sociology. What Idelia has enjoyed the most about working with Fondo Esperanza is sharing experiences with her group because they have created strong connections and friendship between them.
Temuco is the capital of the Araucanía region. It is located 670 kilometres south of Santiago (the capital of Chile) and possesses a series of lake-side spa resorts and striking native flora and fauna. This region is also noteworthy for being the region where 50% of Chile's existing indigenous Mapuche community lives; some of whom are members of Fondo Esperanza communal banks.
About Fondo EsperanzaFondo Esperanza (FE) is a private non-profit organization that supports entrepreneurship by providing micro-credit and training to people living in poverty in well over 100 cities throughout Chile. By providing these services, FE aims to improve the living conditions of the entrepreneurs and their families. In 2010, FE provided loans to more than 41,000 entrepreneurs. It utilizes a communal banking model in which groups of 18 to 25 clients meet on regularly and guarantee each other’s loans. The members use their portion of the loan to create or expand their own businesses. In the group meetings, clients receive training though the FE Entrepreneurship School, which enhances clients’ personal and business skills and ability to work in groups.
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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Success!! The loan was 100% repaid