K. Fred is the leader of his lending group in Kampala. He is a hardworking and friendly man who is married with five children aged 9, 5, 4, 3, 3.6 and 1 years-old and he takes care of two other dependants. For the last eight years, Fred has had a dry cleaning business in Makindye from which he is able to make 200,000/= a week profit although he faces challenges with electricity problems and limited capital. One of his reasons for success is that he is caring to his customers and has good time management therefore winning his customers’ trust. He hopes to develop his dry cleaner business and educate all his children to higher levels. Fred needs a loan to be able to buy an additional washing machine to expand his business.
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.