Ruth N. is a hard-working and very friendly woman who has made a living running a tailoring business in Kitega for the last 25 years. She is a married, has eight children and also cares for several orphans. Due to increased competition in her business, the number of customers Ruth serves has been falling, along with her profits. She believes she can turn this around with a loan to her group, pictured here. She will use her portion of this loan to buy more cloth and materials, thereby increasing the number of items she has to sell. Her goal is to earn enough money to allow her children to stay in school and go to college.
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.