Kiva has a new trend. They let you lend to groups. Here’s one such lending opportunity they offered:
It lets lenders spread their risk among a group who - as a whole - are responsible for repaying the loan.
Macrene, age 54, is the chairperson of Gwali Mutala Women’s Group in Kasanje. She is a farmer growing sweet potatoes and cassava on her family land; and at the same time she buys produce from other farmers, including bananas, Irish potatoes, tomatoes, and green pepper, which she takes to Kibuye farmers’ market every Wednesday for sale. She has been doing this with the help of her husband, who is also a farmer, for the past 20 years; and so far she is not regretting the path she took, especially with the loans she has been getting together with her members for 8 years now. Her dream is to buy a motorcycle to help her with the transportation of her produce from the villages, where she buys most of the produce. She is married with 8 children, the eldest being 35 years old and the youngest being 19. She also helps to look after 4 grandchildren who are still in school.
This protects middle class inexperienced people who have a good intention to help but at least want their money back!
There’s a precedent for this… Have you ever read how Lloyd’s of London syndicates work? Members share the losses and - at least used to be - responsible with their personal assets.
Could this work for work at home entrepreneurs in the US to receive a group loan? Or are we too individualistic here?
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