Betty N. is the chairperson of the Kikooza Development Association in Mityana. She is a hard-working lady. She is married with four children and cares for three other relatives as well. Betty has a produce-selling business, growing matooke (green cooking bananas) and other food crops like cassava (Uganda's main staple food), sweet potatoes, maize (corn), beans and so on, and selling at the market for cash. In seasons when she does not have a large enough harvest, Betty buys from other farmers so as to keep her clients supplied. This is her sixth loan with the group from Pearl Microfinance (a field partner of Kiva). These loans, which provide money to buy the produce she needs, have increased her profitability and the level at which she is able to save. Betty needs a new loan to be able to buy more produce for her business and also to pay school fees for her children. (Also pictured above is Fred, the credit officer of the group.)
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.