S. Cate is the leader of her lending group in Mukono. She is a friendly, determined and hard working married lady with a salon business in Nakisunga town and it has been running for 18 years. She is a happy woman with good ways of handling her customers in addition to the experience she has and she is grateful because she is able to make some profits that in turn help to boost her business. Cate has dreams of expanding her business by starting another branch and this will enable her to give a much stronger helping hand in addition to her husband’s contribution. However, her main business challenge is having customers that do not want to pay on time for the services rendered and this affects her cash flow. She has 7 children and takes care of 1 orphan and the eldest of her children is at the University with a lot of school fees to pay. Cate needs a loan to be able to buy more hair oils, cosmetics and hair pieces for more stock.
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.