S. Benard, aged 43, has come a long way with his timber selling business. He started with the savings he got from small-scale tea growing in his home area of Kashenyi, Kihihi. Having had determination and a vision to change for the better, the married father of 7 children invested in the timber sales business. He gained confidence from his friends who were in the business and gave him the idea.
He supplies to timber dealers from the big city centers with large stores. This has seen him earn 360,000 Ugandan shillings on a monthly basis. His main intention is to expand but he is facing long odds in implementing this as he lacks capital input. With this loan, he will buy more trees for cutting timber and thus be able to generate more sales revenue to enable him to meet his family's needs.
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.