K. Nathan is a hard-working gentleman who is married with 10 children. Seven of the children are out of school and doing their own businesses while Nathan pays school fees for three children and two grandchildren. Nathan has a store in Mityana from where he sells produce like beans, maize, and ground nuts which he buys from farmers in the villages and sells to shops and other traders in the town center. He has been able to win a number of customers, therefore making profits that have enabled him to care for his family, pay his children’s school fees and increase stock in his store as well as being able to repay back his loan on time. After paying off his previous loan, Nathan needs another loan to help with buying more produce for his store.
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.