Jane K. is the leader of the Lubugumu Twekembe women's group, which has been in existence for six years. She is a hard-working and devoted lady with a business of farming matooke, cassava, sweet potatoes and so on, as well as making local brew for sale as a wholesaler and at a retail price for her customers at her bar at her home. She is happy that the loans help her on her farm with buying quality seeds as well as employing manpower, plus buying bananas and yeast used for making her brew. She is a married woman with 10 children, five of whom are still in school while the rest are doing various businesses. She needs a loan to help with paying her children’s school fees and buying bananas and yeast for making her local brew.
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.