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Apr 18, 2016 11:31 EDT

Florence’s Group – A portion of Florence’s Group’s $1,200 loan helps a member to buy cost-efficient maize seeds and fertilizer for the coming harvesting season.

iCrowdNewswire - Apr 18, 2016

Florence’s Group

Florence's Group
In this Group: Florence, Abner, Margaret, Teresia, Plantina, Alex, Paul, Timothy, Alice, Everlyne, Victoria

Florence is 45 years old and has eight children. She has been a farmer for 15 years and is always said to be a very hardworking individual. Even though Florence is the only person shown in the above picture, she is actually representing her group formed by 11 farmers in Webuye District, Kenya.

Florence started working alongside One Acre Fund a few years ago, in 2011, and decided to do so because she wanted to earn enough to feed her family. Since then, she has seen her life improve; especially because she has had a healthier life due to better nutrition ever since. This year she decided to represent her group because she wanted to help more farmers.

Florence’s Group will receive farming inputs to plant a total of 11.25 acres of land. Additionally, some of the farmers in the group will be purchasing a solar light so, with this loan, the group will also receive a total of four solar lights.

Additional Information

More information about this loan

This loan is part of One Acre Fund’s integrated agricultural package, which provides groups of smallholder farmers with seeds and fertilizers on credit, onsite agricultural training, and insurance options. Borrowers also have the option to purchase solar lanterns as part of the loan package.

To give borrowers more flexibility, One Acre Fund permits them to switch groups, drop out of the program and change their loan amounts before receiving their inputs. To accommodate this, Kiva allows One Acre Fund to post loans for groups that may change in size and membership. Only the group leader is featured in the photo, representing the loans for each of his or her individual group members.

If a lender makes a loan to group containing a borrower that drops out, the lender will receive the full loan amount for that borrower back at the end of the harvest season. If the lender makes a loan to a group containing a borrower that decides to take a smaller loan amount after the loan is funded, the lender will receive the repayments from the smaller loan amount plus the full difference between the two loan amounts at the end of the harvest season.

This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.

About One Acre Fund

With this loan, One Acre Fund will purchase fertilizer, seeds, and other important farming inputs to distribute to this farmer group during Kenya’s next planting season in February. This distribution of farming inputs is part of One Acre Fund’s integrated agriculture package, which includes training, reliable input supply (such as fertilizer and seeds), credit and insurance. Clients enroll between July and October for the following planting season, which begins in February. By purchasing inputs during these months, One Acre Fund is able to take advantage of the historically low farm input prices during this time of year in Kenya.

Members of One Acre Fund form groups in which each borrower guarantees the loans of all other borrowers in the group. One Acre Fund differs from a traditional microfinance institution, however, by allowing groups to split before the delivery of inputs at planting time. If a group were to split, each of the two new groups would have fewer members that could support a delinquency or default from a member. This may represent a different risk than that for a traditional MFI’s group loan.

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.


Contact Information:

Florence's Group

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