M. Ruth, 37 years old, is hard working lady and the leader of Kibuye United group in Mubende. She is a farmer and, at the same time, a business lady. She is involved in the sale of produce that she buys from fellow farmers, in addition to what she gets from her own farm. She has been operating her business from Nyabuhula village for 6 years and, at the moment, she is able to make profits amounting to 400,000 UGX a month. She also buys goats and sheep for resale. The good quality of her animals and other produce attracts more customers to her business. Ruth has a dream of buying a car that will help in transporting her goods. As well, she dreams of constructing a family house for her 5 children, aged 4 - 14 years, and the 2 dependents she cares for, all still in Primary school. This is Ruth’s 20th loan with her lending group and she is grateful for the journey she has taken with the help of these loans. She needs a loan to help buy more goats for resale as well as buying more seeds and employing laborers on her farm for further improved outcomes.
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.