A. Monica is the leader of her lending group in Ibanda. She is 42 years old and married with 3 children that are in secondary and primary schools. Monica has a drug shop in Ibanda Main Street that she has been operating for over 7 years and being that it is strategically positioned in the town centre, she is able to attract more customers hence more profits. Monica has a dream of transforming her drug shop into a wholesale shop so that she could be able to make more sales. She needs a loan to help restock her drug shop with more medicines for malaria, and other minor illnesses to avoid shortages. She is such a determined and hard working lady.
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.