Festo T. is the leader of his lending group in Kihihi. He is 42 years old and married with six children ranging in age from 4 to 19 and who all attend primary or secondary school. Festo is a business man who trades produce in the Rukakara trading centre. He has been in this business for five years and he is able to earn about 400,000 UGX profits every month. Festo says that his returns would be better if he had enough capital since he knows how to treat his customers well. He hopes to expand his business into the main town of Kihihi where there are better services and earning potential. This will help him better provide for the education of his children. He needs a loan to be able to improve his business by buying more produce like coffee and matooke for resale. Matooke is a meal consisting of steamed green plantain and is one of the national dishes of Uganda.
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.