B. Patrick is a 36 year old man and a business man in the fish trade. He buys fish from the fishermen from the various landing sites in Lugazi and Mukono and the challenge comes when his suppliers do not have enough for him. Patrick says that before this business 3 years ago, he was a salary earner and his earning was not able to take care of his family throughout the month yet he is now earning 300,000/- as profits. He wants to become the biggest supplier of fish around the region and his determination and hard work in addition to the loans for increased capital will take her there. He needs a loan to reinvest his business so that he can make enough savings for his children’s education.
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.