It should be mentioned that the group members do not have much competition in their particular lines of business as they sell on the outskirts of the city.
They plan to use the loan money to increase working capital and to buy more merchandise to sell such as ingredients, and tools to improve their work. In this way they will generate more income so they can proviD. their families with a better quality of life. As for experience with credit, the group is on its third loan cycle and has demonstrated honesty, responsibility, and compliance with the repayment requirements.
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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