N. Alice is a widow that is taking care of her 3 children of which 2 are still in school and she works so hard to ensure that their school dues payments are on time. Alice has a retail shop in Bajjo since 1998 and is blessed with the help of her children in managing the shop in times when she is not around and attending to other duties. She also has a restaurant in the same area and prepares local foods and sauce for 1 year. She says that she managed to utilize her profits and savings to start up the restaurant business and vies to continue expanding it with the more profits and savings derived from the retail shop. She needs a loan to help restock her shop with more products.
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.