Stephen is twenty – nine years old. He is married and has given birth to two children. He lives with his wife and children in a rented apartment in a town called Wiawso in the Western Region of Ghana. Wiawso is a commercial and farming town. Stephen is a trader. He runs a provision store in his community. He is the leader of a trust bank group called ‘Nkwa na hia’, meaning life is the most important thing. The group members are engaged either in farming and/or trading activities. They sell/supply in their local market and nearby communities. They sometimes trek to nearby community markets. They want a loan to buy goods in bulk to expand their businesses.
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.