N. Christine, 28, earns her living waiting for travelers to buy bottled fruit juices and chicken from her stand. It is not always a rosy picture! One has to have reserves of resilience to succeed in this business. Anyone who has traversed the Kampala-Jinja highway will bear witness to the stiff competition that exists at this popular stop-over for refreshments. Christine is now four years into this business and says she has managed to give one of her young children an education out of the profits. In a week she makes close to 45,000 shillings, and is anticipating better prospects with the acquisition of this loan. Through the sale of more bottled soft drinks and roast chicken she will be able to earn more money.
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.