M. Lozio is a friendly, hard working and determined married man and the leader of his lending group in Lugazi. He is a businessman in the tailoring trade. He has been in this business for 10 years. One of the major challenges in his business is the seasonality of his business, leading to the scarcity of customers yet the needs keep coming in. Lozio makes 250,000/= profit a week and this helps him pay school fees and cater to other family needs in time. Because Lozio is able to have quality materials for his business, he has been able to acquire tenders like making uniforms for schools and for other functions. He wishes to expand his business further and, if possible, start a tailoring school and teach more people the same trade. Lozio needs a loan to help buy more material to make new clothes.
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.