B. Samuel is a 55 year old leader of his group in Mubende. He is married with 8 children of which 2 are still in school and the rest managing their own business while he also takes care of 6 dependants. Samuel has a retail shop business in Mubende that has been running for 9 years and he is able to make weekly net profits of 20,000/=. Samuel is a good client that also knows how to handle his customers well. In future, he would like to turn his retail shop into a wholesale shop to be managed together with some of his children as well as be able to build a very nice house for his family. Samuel is seeking for a loan to be able to invest more into his shop by buying more products for resale like cooking oil, muffins, bread, toilet rolls and so on since this will enable him pay for his children’s school fees and more business expansion.
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.