K. Lydia is 50 years old and married with 6 children. Three are still in school and she takes care of three dependants. Lydia is a business lady selling produce from Mukayembe Trading Centre for four years. At the start of her business, people sold maize, but now things are changing, and she is changing too. She now sells other produce, like matooke and cassava, too. Lydia is able to make a 25,500 profit per week. She says that this is mostly attributed to the location of her business, and in the future, Lydia would like to become a wholesale supplier of produce. She needs a loan to be able to purchase maize grains to increase her existing capital and make some more profit for school fees. Lydia is so friendly and would like to see that her children are well off.
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.