It has been four years since N. Annet, age 34, began her food sales business in Kikooza-Mukono. With profits from this business, she has catered to her family's needs to the fullest. She attributes her business' longevity to her good relationship skills, especially when transacting business with her clients. Her main challenges have manifested themselves mostly during the rainy seasons, when prices of most of her cash crops fluctuate. In a week, she makes profits to the sum of 100,000 shillings. With this loan, she wants to buy in bulk more profitable agri-produce like cassava, maize and coffee, that she will later resell.
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.