Therefore selling of used shoes has created market for many Ghanaians like James. He takes his stock from Greater Accra of Ghana and has been in business for four years now. He wants to use the loan to buy more shoes to increase his inventory. He believes this loan would help him to save more for his children’s education and also to rent a store to trade in.
He is the leader of a trust bank group called ‘Vine’. He is the only man in the group photograph. Most of the members of this group are small traders and food sellers. In this group, members guarantee for one another as social collateral to access the loan and peer pressure to repay the loan.
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.
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Success!! The loan was 100% repaid