Amina A., age 34, is divorced with three children, ages eight, five and three. She sells charcoal. She started this business two years ago and works daily from 6am until 7pm. She is able to earn a monthly profit of around $149.
This will be Amina’s second loan from Tujijenge Tanzania. She used the previous loan to increase her capital and repaid the loan successfully. She now hopes for a second loan to increase her stock by buying more sacks for charcoal storage.
Amina will share this loan with her loan group, Mchicha, which totals twenty members. The members of the group hold each other accountable in paying back their loans. In the picture, Amina is in a yellow dress at the top in the middle.
About Tujijenge Tanzania
This loan is administered by Tujijenge Tanzania, which was founded in 2006. It has operations in Dar es Salaam, the coastal region, and the Lake Victoria region. The organization aims to reach out to micro entrepreneurs and provide them with financial and social intermediation services because capital is one of the major barriers to development and success for micro-enterprise initiatives in Tanzania.
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.