Florence is a wholesale fish seller. She travels to Bbaale, a landing port for fishermen, and buys large amounts of fresh fish. She then packs them into her fish truck and transports them to Bwaise, where she sells to her customers at wholesale prices. When Florence is busy with other things her brother runs her business. Florence has 8 children. Three of them are still in school and she is able to pay all of their school fees from the profits from her fish business. Florence is married to a farmer. The farm that her husband works is so large that he is able to employ some people from the community. Florence would like to buy an additional transport vehicle some day because her customer base is now exceeding the amount that she can supply with her currently vehicle. Now Florence is requesting a loan of 6 million USH to buy fresh fish from Bbaale.
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.