Doreen runs a business selling tomatoes, cooking oil, Irish potatoes, flour and vegetables. She would like to use this loan to buy maize, Irish potatoes, cooking oil and tomatoes to stock the business. The profits from the business will enable her to pay her children’s school fees. She started the business to support her husband financially and to be able to provide food and other household necessities.
Doreen plans to make savings and purchase a plot of land. She also plans to increase the number of bags of maize she orders from one to three.
More information about this loan
This loan is part of Microloan Malawi’s efforts to provide very poor women, mostly below the poverty line of $1.25 per day, startup capital for small businesses. The organization uses a data system to target women that qualify for this program, and provide loans beginning as low as $20 per borrower depending on the proposed economic activity. Extensive training on business and financial skills, as well as marketing and group dynamics, is also provided given that these women are often first time borrowers in the formal financial market.
About MicroLoan Foundation Malawi:
MicroLoan Foundation Malawi is a non-profit organization that provides impoverished women living in the rural areas of Malawi with agricultural, solar, and business starter loans.
The organization targets underserved women and is dedicated to poverty alleviation. Loans issued through Kiva will allow MLF-Malawi to diversify funding sources, maintain socially impactful programs like skills trainings, and offer loans with lower interest rates.
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.